Bear Stearns’ nearly collapsed this past week due to a liquidity shortfall. The Federal Government’s and JP Morgan Chase’s quick response to save the big bank does indicate that we may be turning the corner on failures related to bad mortgage debt and credit availability. However, it also means that we, the tax payers, are going to pay for at least part of the rescue. February consumer pricing index was unchanged for February indicating milder than expected inflation. This is good news for the overall economy and the Fed Fund Futures are now predicting a 100% chance that the Fed will cut short term rates by .75% points next Tuesday. Aside from the Fed meeting on Tuesday there is little other economic news this coming week.
In spite of signs of a recessionary signs in the economy and tightening credit, we still believe there are buying opportunities with a significant upside in many areas of the country for the patient investor.
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you and your clients. David. 919.851.0999.
