Yes, the news is full of it.
The sub-prime loan market with its 100% financing and option ARMs and no-document loans is having a tough time these days, and the problems are spreading into the sub-A and prime markets. In a report on CNBC today, Wells Fargo announced that it was raising jumbo rates to 8%, an increase of 1% since just last week. Other major lenders are following suit with increases, albeit at not taking the full leap that WF has taken. Today also, in a long-anticipated move, American Home Mortgages closed its doors, laying off more than 7,000 employees. A major player in the sub-prime market, AHM may be just the latest casualty in this correction in the housing market. The stock markets, largely in reaction to renewed focus on housing market woes, dropped again today. The Dow Jones Industrial mark dropped nearly 300 points, much of it in late and pre-weekend trading.
I will have more commentary on the housing market next week, but my readers should be aware the we think its always a great housing market, but not for everybody at the same time. For those in position to take advantage of current market conditions, this is a wonderful market. If you are in the Santa Clarita area, give us a call at 661-287-9164 and let's get started.
We start from wherever we are. Let's go!
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