3/24/2013

Rush to Buy

Full text of the original Responsible Homeowners Act
http://www.govtrack.us/congress/bills/112/s3085/text

Mortgage Regulation has not addressed every American, Californian or Borrowers / homeowners in Orange County. In the panic to make constituents happy, a bill was slapped together trying to address the largest number of distressed homeowners. It was hurry, hurry make somethong happen. In the end, the wind shifts and the rush was perhaps misguided.
Newport Beach sunset without any frozen yogurt


Reminds me of a analogy, a distant story:

Remember when 31 flavors was to die for?
Then Hagen Daz opened and bubble gum ice cream was forgotten.
Cold Stone Creamery next delivered the smell in hand crafted flavors that we never knew we desired. We rushed to the mall to buy.

The market in ice cream shifted to Golden Spoon but now there are twenty yogurt places near where I live in Laguna Niguel. I can walk to any and choose. We've moved to Cherry on Top or some other brand... but what locals in Orange County really seem to crave is healthy Nektar, Active Culture, Banzai Bowls... who is next? Where will we run to next?

The mortgage business is like that right now. Buyers hurry to find a property to make an offer. They  are a spin of emotions.
A borrower was rather dismayed today that their offer on a home in Newport Coast was "beat out" by someone else. They seemed panicked.
My advice twice today was, "nothing too good or too bad lasts too long." This market with no listings and frenzied offers will break into something new. Some other house will come along, it may not be the exact same calories or square footage, but don't go mad over ice cream or yogurt places. This might be a fad.

Something will come along that is great in its own time.

Mortgage rates aren't going fire sale "free yogurt" or some jump in the market, "gold bullion" - yet.