The Real Estate Experts

The Dow this week fell to a six year low. Not accounting for dividends, the Dow is at a level equal to what it was twelve years ago. Ouch! This was, at least temporarily, good news for Bonds giving us a slight rally in rates for week end. Over the past 12 months the core CPI is up 1.7%, which is the lowest year over year inflation reading since mid 2004. One question rises amongst this - If inflation is so low - why is Gold at $1000/oz? Gold, the typical hedge against inflation has been skyrocketing. Somebody appears worried that all this stimulus in a low interest rate environment will eventually lead to inflation. Lots of talk this week on the rollout of the housing pieces of the Stimulus but more details to follow around the March 4th dates. So far the 8,000 tax credit, non-repayable if you remain in the home 3 years is having positive reception. Energy pieces and some refinancing strategies are still in the process of being rolled out.

There are a lot of inquiries about who is eligible and what are the details for the new packages for help for homeowners in trouble or just refinancing. More information will be forthcoming on this early March so as of yet you will find many Lenders may not have the answers you are seeking just yet. The $8,000 tax credit is out in full swing, however, and borrowers, even if they closed in 09 and filed using the $7500 credit can you back and amend their returns and get the full $8000 now. Good news and it is non-repayable if you live in the home 3 years. Remember you can look at your overall tax picture and either use your 08 return and get the money now or use your 09 return, whichever may give you the best advantage.