Home loans and the Tampa Bay area real estate market

As the Bond prices move higher, the home loan rates should continue to improve. That is good news in this buyers market. Bond prices have overall been heading up this fall, and as a result home loan rates on conforming loans have improved for the most part. The other side to that is you better be a good candidate as the banks are becoming very particular. If there is any indication of weak economic trends this week the money should continue to flow into mortgage Bonds which are perceived as a safer investment. What this means to the buyers (and sellers) of homes is that as Bond pricing goes higher the home loan rates typically go lower. Bonds should continue their upward trend. The only issue at hand is that the negative news regarding the subprime lending market (the poor quality of the loans made by the banks in the boom period) have the money supply a little spooky and not too sure of the safety of their investment. This might damper the trend of the mortgage rates dropping. As it realtes to the real estate market the other problem is that the lenders have tightened the supply of money with more stringent requirements for borrowers which shuts out many first time buyers. See http://www.bullardrealty.net or http://www.fredbullard.com for more information.