Snakes On A Blog: If you've been receiving my newsletters, you'll see my forecasting has been pretty dead on as far as interest rates, The Fed, House Values and appreciation. I'm also going out on a limb to predict that the upcoming release of the movie "Snakes On A Plane" will be a block buster cult classic. Using the same logic, I also predict that we're going to see some interesting loan programs emerge in the next 5 months. We're going to see 50 year amorization loans and new hybrid loans where there will be an amalgam of neg-am loans and fixed rate interest only loans. There are two reasons: The industry must create new niches to keep loans in process and Two; the enconomy is strong with inflation leveling off. Fuel prices will continue to be a challenge, insurance rates will rise, educational costs going up, entertainment costs (ticket price to see Snake On A Plane will be $10 per ticket), travel cost will rise (security costs) and the Holidays are right around the corner. The economy needs to keep moving. Buying, selling, producing, importing, exporting. So, everything will get more expensive including an increase in wages to off-set that (a vicious cycle really)...and people will be needing to REFINANCE to make "cash-flow" to afford everything. So, look for 'Snakes' to make headlines, and call me before the mad rush to refinance. Get things planned so you don't stress. People don't plan to fail, they fail to plan. Pat Townsley, Real Estate Forecasting and Finance. www.PTRE.net. Licensed Broker #01234350. 800-646-5527.
1 comment:
Hi Pat,
I don't think Marin County will be needing new types of suicide loans over the next few years. No one will be buying since real estate is grossly overpriced there. 5 years from now, after the 50% haircut, I think people will be smart enough to stick with a standard fixed-rate loan, like our parents and grandparents.
Best regards,
Lou
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