The System is Working Part 3 By Craig Jarrell

Posted by Emily Ray-Porter Group on Thursday, October 2nd, 2008 at 1:54pm.

 Here is a note from Craig Jarrell on the current state of the credit market:
On the eve of the Vice Presidential debate, the
Senate has adopted the bailout plan and
it moves now to the House for a vote.
 
Despite the hysterics of the media, the world
has not ended and the sky is not falling. Banks
are still liquid, the stock market goes up and
down and the world goes round and round.
 
Dallas continues to lead the nation in the lowest
decline in home prices at 2.5% which bottomed
in February of 2008. Interest rates remain around
6.00% for a 30 year fixed mortgage. FHA loans and 5%
down conventional loans are abundant for all with credit scores above 580. This only leaves out the borrowers who
are not financially ready for homeownership.
 
There is no credit crunch, there is only a return
to common sense and the prudence of
of years gone by. Much has been compared
by the naysayers to the Great Depression.
Today's market has no resemblance to
the Great Depression in any way. 
 
In 1929, unemployment was 25%. Today it
is 6%. In 1929, home prices dropped 30%,
the national average is 16% and only 2.5%
in Dallas. In 1929, 40% of all mortgages were
delinquent. Today we are at 4 to 6%, depending
on the class of mortgage and number of days
past due. In 1929, 9000 banks failed. In 2008,
only 13 bank failures.
 
We still live in the greatest country on Earth
with the greatest economy. Media induced
panic will cause temporary problems.
Wall Street will give us all heartburn, but the
mortgage market is strong and liquid and
open for business at record low interest rates.
 
The bad loans are being absorbed and resold.
Free enterprise is alive and well and functioning.
Boom and bust cycles are inevitable. We are on
the edge of a great real estate boom, don't be left out!
 
 
 
_________________________________
Craig Jarrell
President-Dallas Region
Pulaski Mortgage Company
 
Preferred Realtor Partner
Metro-Tex Association of Realtors
 
5956 Sherry Lane Suite 530
Dallas, Texas 75225
 
972-735-8585 office
972-381-6258 voicemail
214-361-5334 facsimile
 
"Referrals are the heart of my business"
 
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