Shore up your financial house, as a Buyer

Recently, the Federal Reserve cut the Discount Rate from 6.25% to 5.75%, which is positive news for home mortgage customers - a drop of .25 basis points in the Fed Funds Rate is now anticipated in September and another .25 basis points in October. The overall trend is down (though rates do bump up and down weekly), and brings additional relief at least to the "buyer" side of the real estate business - which obviously already is a buyer's market with drastically reduced pricing, available incentives, and a still strong inventory available to choose from.

On the other hand, the mortgage markets are also tightening up, due to very difficult financial pressure on the "sub-prime" industry - Banks are less likely to make the more risky loans, and therefore many more borrowers will likely have to pay higher interest rates for sub-par credit, or may not get the extended credit they need to pay the still high pricing in many suburban areas.

So - it pays to be a wise financial investor now more than ever, working with all your contacts and a really good agent, to target the opportunities for a new home investment that precisely fall within investment parameters you set. Pay attention to the details, don't settle for the easiest or most convenient property or loan - you really can find great value now, but your own financial house needs to be in good order.

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