Countrywide’s forward looking positive forecast did not sufficiently offset their $1.2 billion third quarter loss. The University of Michigan consumer sentiment index was lower than expected as were durable goods sales and housing starts and permits remain dismal. We do expect another Fed rate cut this Wednesday which could reverse the flow of money out of bonds and into stocks and consequently move mortgage interest rates off of their lowest level in the recent past. However, we do not see housing value or sales rebounding in the near term.
On a positive note, this does represent one of the best buying opportunities in the real estate since the early 1960’s.
Thank you for the opportunity to serve you and your clients.
