It's been a couple of weeks since I last made an entry. Plenty of things have happened to the real estate and stock markets in that time. A lot of people are scared. It certainly can be a scary time, but only if you allow fear to control your life.
Last week, while appraising a property in Elmore County, I had the opportunity to visit with a gentleman visiting from the Chicago area. His job was to prosecute mortgage fraud. He named off 4 or 5 well-known bankers and lenders who he is persuing for their involvement in what is now known as the US mortgage crisis. Among other things, he told me that this $700 billion bailout/rescue of the lending industry is only a small ripple in the large pond of fiscal improprieties. He said that it's going to take 6-8 years for the US economy to get over this crisis. He recommended that anyone truly interested in learning more about the truth behind the crisis go here.
Wow! Sounds scary enough to me! But, I hope to be able to see the good news--the silver lining, if you will permit me. Interest rates aren't great right now (this is all relative--25 years ago, they would say that our rates are fantastic!), but the economy appears to be slowing yet more. I would imagine that the Feds would want to spark the economy to keep it moving along, before too long. One of the more common ways to do this is to lower the interest rates to encourage borrowing and lending. Should they lower the rates, rates will likely come close to all-time lows. While this may not happen until precautions against predatory lending are in place, I have a confidence that they will happen.
This will encourage mortgage lending for both purchases and refinances. For obvious reasons, this means more business for all of us. Even better, is that now, many of our competitors have left the industry, so there should be less competition for both the lending side and for the appraising side.
Leave me a comment about what you think will happen. Am I approaching this economy with rose-colored glasses, or do you see the silver lining that I think I see?