Expectations for Real Estate and the Economy in the Tri-Valley for 2008
February 14, 2008
Every time I have the opportunity, I go and listen to one of my favorite speakers
, Carole Rodoni. She is currently the President of Bamboo Consulting and delivers speeches throughout the Bay Area. In Carole’s most recent discussion, she talked specifically about the economy and the 2008 outlook for the real estate market within California and in particular, the Tri-Valley area. Read more
Will the Proposed Conforming Loan Amounts Actually Happen?
January 28, 2008
By now, some of you have heard about the proposed changes for conforming loan amounts contained within the Economic Stimulus Package. It is currently being rushed through Washington, and up until a few days ago, appeared to have favorable momentum. However, some push back is starting to occur on the details contained within the proposal. The package includes a provision that would increase the maximum conforming 
loan amount as high as $729,750 in high-cost markets. One thing to note, California is currently not considered a high cost area. Only Alaska and Hawaii have been designated with the high cost tag. In order to get the maximum conforming amount of $729,750, California would have to be identified as a high cost area. Additionally, the new conforming loan amounts will be temporary, possibly reverting back by year’s end.
If passed, this should be fantastic news for California homeowners, potential buyers, and real estate activity in the Tri-Valley. Here’s how it should help. Read more
The Fed Rate Cut and What it Means
January 22, 2008
The Fed made a significant move today with an emergency Federal Funds rate cut of 75 basis points. The move was made after global financial markets sold off in dramatic fashion and the Dow Jones industrial average opened today down 450 points.
It appears that finally the Fed is taking significant action to prevent dropping into a formidable recession. There is also talk out on the street that the Fed might take another 25 to 50 basis point cut at the end of the month during their formal meeting.
The big question is what effect does the lowering of the funds rate have on consumers? Specifically, how does it affect items such as mortgage interest rates, real estate in the Tri-Valley, the ability to borrow money, consumer spending, etc. I found an article that clearly breaks down the impacts of the rate cut by the Fed.
