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Mike Zagaris has been talking about it since this market cycle began. The foreclosure crisis has been a bane to some, and a boon to others. However, “We’ve found the bottom,” Zagaris said. “The financial institutions have seen the light and are allowing the market to find its own level.” Banks are moving their inventory of foreclosed upon houses, bringing qualified homeowners into the market with heavily discounted properties and sound lending strategies amidst great interest rates.

At PMZ Real Estate, we’ve seen the bottom in our rear view mirror and we’re riding the wave back to the top. Bloomberg points out in there most recent Exclusive story, California’s Discount Foreclosure Sales Point to Housing Bottom, that there are, indeed, good times coming and that there is opportunity available now in the housing market.

Right now there is EXCELLENT opportunity for homebuyers and investors. Home prices are on an average discount of 30-40% according to Bloomberg. Even with the bidding wars going on with foreclosed properties, people are still walking away with huge discounts on the properties they purchase. And, interest rates are still attractive; no where near the 14% they were in the 80’s.

Interested in learning more? Check out the Bloomberg article for an even more informative look at where the housing market is taking us.

The wildly popular, infinitely useful, online classified ads website, Craigslist, was found not guilty of charges from Chicago based Civil Rights attorney group that claimed Craigslist violated federal housing laws and was responsible for posting ads that excluded potential buyers or tenants on the basis of race, gender or religion.

Since Craigslist allows it’s users to post unedited classified ads, it is protected under the Communications Decency Act. The Electronic Frontier Foundation said this ruling means that, “the soapbox is not liable for what the speaker said.” Keeping Craigslist and sites like it, free from liability when it comes to it’s users’ posted content.

The appeals court didn’t rule out investigating individuals who post discriminatory ads onto Craigslist, which some argue, is a more appropriate approach to dealing with the matter.

U.S. Sen. Pete Domenici (R-N.M.), after a private meeting with Federal Reserve Chairman Ben Bernanke, said the central bank chief anticipates signs of a rebound in the housing market by the end of 2008.

Concerns remain that the market downturn will cause an economic recession, which prompted the Fed to cut interest rates recently.

Meanwhile, despite an “unusually uncertain” economic outlook, San Francisco Fed President Janet Yellen says the country will avoid an “outright recession.” A survey of economic forecasters by the Philadelphia Fed indicates slightly less than 50-50 odds of a recession.

Source: Investor’s Business Daily (02/13/08)

NEW YORK (CNNMoney.com) — The Federal Reserve cut a key short-term interest rate by a half-percentage point Wednesday, its second significant cut in just over a week, as the central bank tries to combat the growing risk of a U.S. recession.U.S. stocks, which had been slightly lower ahead of the announcement, surged on news of the rate cut.

The federal funds rate, an overnight bank lending rate that affects how much interest consumers pay on credit cards, home equity lines of credit and auto loans, was cut to 3.0% from 3.5%. The rate had stood at 5.25% only four months ago.

via CNNMoney.com

The Federal Reserve slashed two key interest rates by three-quarters of a percentage point Tuesday following an unscheduled meeting, citing continued concerns about a weakening economy and turmoil in the financial markets.via: CNNMoney

Federal Reserve Chair Ben Bernanke told a Washington D.C. business group Thursday that more interest rate cuts are in the offing to ward off a further weakening of the economy.

“On the whole, despite improvements in some areas, the financial situation remains fragile, and many funding markets remain impaired,” Bernanke said. “We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks.”

Many economists now believe the Fed will slice its key interest rate by a bold one-half of a percentage point when the Fed meets Jan. 29-30. Some, however, think the Fed will go with a more modest one-quarter point reduction, given concerns that high energy prices could spark inflation.

The Federal Open Market Committee (FOMC), the policy-making arm of the Fed, will be paying close attention to whether the weak housing market spills over to other sectors of the economy. However, so far, Bernanke said, the recession remains just a forecast.

Via: Dow Jones Business News (01/10/08)

Analysts are predicting that the Federal Reserve will cut key interest rates when it meets Jan. 29-30.

Such a rate cut — while not directly tied to mortgage rates — does predict their levels. A key rate cut generally means mortgage rates will decline.

Recently released employment numbers “are clear evidence that the economy is beginning to slow,” says John Canavan, market analyst at Stone & McCarthy, “and that the housing weakness and credit-market woes are starting to take a bite. At this point, there’s no question that the Fed will have to ease again.”

The question is how much of a cut. Some observers say a half percentage point is likely to help offset the negative fallout from the subprime mortgage market and weaker job growth.

Other analysts say consumer spending is high and exports are rising. They predict a quarter percentage point decrease.

via: The Wall Street Journal, Deborah Lynn Blumberg

The stock market plunged today as Federal Reserve Chariman Ben Bernanke announced that the fed would be cutting interest rates for the third consecutive time by a quarter point.

What does this mean for homeowners? While this won’t be the key to fixing the economy, it does mean the Federal Reserve is on our side:

• Purchasing a home is even more affordable with the new lowered interest rate.
• With a lower interest rate, now is a great time to refinance!
• Home equity lines of credit will now be cheaper.
• Rate resets might not be as severe for borrowers with adjustable rate mortgages

Continue reading about the rate cuts and how this will effect homeowners and our economy.

via CNNMoney.com

Last Friday, November 16th, the House passed H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, by a vote of 291-127.

This piece of legislation provides protection to consumers of home mortgage products by providing certain minimum standards for consumer mortgage loans, and prohibiting steering incentives to mortgage originators, including incentive compensation.

The bill additionally establishes minimum repayment standards for mortgages and prohibits refinancing that does not benefit the borrower. For more information regarding the bill, you can click here.

Via MortgageOrb.com