2.2% Decrease in Existing Home Sales for October

Housing Market Woes Continue

Tight lending restrictions and high unemployment as still affecting an already struggling housing market.

According to the National Association of Realtors, sales of existing homes fell 2.2% in October to a seasonally adjusted annual rate of 4.3mln units. The height of the Market was back in September 2005 with a peak of 7.25mln units sold. That is a decrease of 38.9% in the last 5 years.

The past July was the slowest pace for sales in the last 15 years. The market gained some momentum in August and September, but these latest numbers for October remind us that we are still not out of the woods.

Bond Buying Drives Mortgage Rates to New Lows

30 yr falls to 4.17%, lowest on records dating back to 1971

Since the Fed announced that it would be pouring $600bln into Bonds, mortgage rates have been doing what they are supposed to be doing, heading down again and touching new lows.

This week the Fed stated it would be aggressive over the next 30 days and pound in $105bln. The extra demand signals that the yield on treasury bonds will go lower and mortgage rates tend to track those yields.

Is 4% or lower for a 30 year mortgage finally possible? I guess we will see over the next 30 days.

If you are thinking about buying a new home or investment property, there has never been a better time to do so. These low rates combined with lower proeprty value create a unique opportunity to own a home for a lot less than you would have paid 3-4 years ago.

If you are on the fence and are afraid in this market, here is your push to get it done. Always remember Real Estate and owning a home is a long term investment. In the long term, the property will always be worth more than you paid.

Feds Bold Move to Boost The Economy. Commits to Buy $600bln in Bonds

Fed Looks to Further Lower Borrowing Costs

In what some are calling a risky move, The Federal Reserve has agreed to buy $600 billion in Government Bonds in a move to drive interest rates lower. Their hopes are to create jobs and boost the economy out of the funk it is still in.

Two ways to stimulate economic growth are to encourage people to spend money and increase hiring.

Many say the plan will provide the boost, but will not solve our problems.

There are several risks associated with this move too. Some of these risks include further weakening the dollar, creating price bubbles on stocks and commodities and driving inflation to dangerous levels.

Foreclosures in New York up 46% in Q3 2010

Most Cities are up YoY

According to a Report from Realty Trac, year over year foreclosure activity was up in 65% of all U.S Metro Areas including New York.

A total of 20,504 foreclosure filings on NY area properties were received. This includes notices of default, scheduled auctions and bank repossessions.

Even though filings were up 46% Q3 2010 vs Q3 2009, there was an 8% decrease in Q3 from Q2 this year.

Daren Blomquist, a spokesman for Realty Trac said New York has "avoided the worst of the foreclosure problems and continues to do so" despite the year over year increase in foreclosure activity.