I think we must circle around the issue that rates may be in that 5.5 range for a 30 year conforming. We have lower prices, about 30+ percent below the highs in many areas. Realtors must rally around this and get the buyers to understand the opportunity. To many buyers they are still deer in the headlights. Realtors must present a case for a turning point here by the intervention in the main mortgage players, Fannie Mae and Freddie Mac.
I am not saying there are no more issues, there are, but when everything is fully resolved the market will be up 5 to 10 percent off the lows. The key to investing is to know when the ship is starting to turn around. I think there are hands on the rudder.
Point one, get a good lender. Find one that is left out of all this. There are some in every market. We have a few in ours. If you don't know, ask other agents who they are using and how they are doing. There is one big national that we all know who is in great shape and is writing mortgages in a good organized manner, Wells Fargo. However, you know your own area. Meet with them and organize a presentation, for you and the mortgage representative. Get your buyers involve in this feeling of opportunity. They will thank you for it later with referrals.
We are a national sales force of over a million strong. This sales force if motivated, can do anything. Right now we have been given the makings of a tool, available mortgages at lower rates. Slowly the market will get it on its own, but we can move it and everyone will profit by it.
Have an office meeting with the mortgage rep. if needed and prepare ads, even local papers can give it a little PR. Basically, there is a reason to call your clients and get them involved. A bit of movement could get it all going. I have been saying if rates could break 5.5 percent we would get going again. People are very rates sensitive; mortgages are up 9.5 percent already week over week with the rate changing so far. You must first believe to get anyone else to believe. You must believe what you sell.
Richard
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