On Monday August 29, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.

Listen to the show.

Part 1 (15:06)

Louis and Ryan discuss the recent earthquake in the DC metro area and Hurricane Irene. Ryan and Louis discuss Ben Bernanke’s Jackson Hole speech. Ryan notes that the housing sector is normally the driver of economic recovery but this time the rate of new home construction is low. Ryan advocates that the Fed looses up credit. Louis notes that the Fed sets monetary policy but not the credit standards. Louis notes that the central banks are trying to put the burden of fiscal stimulus on the congresses of the various countries. Louis notes that the President will announce a stimulus package with infrastructure projects when he comes back from vacation. Louis notes that the Fed is saying we have to address our long term debt problems but that we also have to address our short term liquidity issues. Louis argues that the solution to the housing problem is to let it go and not try to prop up the market and notes that the homebuyer credit worked only during the time that the credit was in effect. Louis also notes that home builders have little incentive to build new homes in areas where those new homes would compete with foreclosures and short sales. Louis points out that Jackson Hole was not the place last year where they announced QE2 and notes that the next Fed meeting in September will be a two day meeting to discuss “various tools” to stimulate the economy. Louis asks Ryan whether it makes sense to buy a home now where the mortgage payments would be less than your current rent payments even if you think the value of the home will decline in value.

Part 2 (14:40)

Ryan agrees with Louis that purchasing a home now with a long term low interest rate loan where your mortgage payments will be lower than your rent makes economic sense even if the home may lose some value. Ryan notes that media attention on financial turmoil leads potential home buyers to second guess their decisions. Louis notes that the inflation rate is currently 3.6% and that its possible to get a loan around that rate and that the inflation rate should rise but your loan will be fixed at a rate lower than the inflation rate, so you will be paying your fixed rate mortgage in later years in inflated currency.  Louis also notes that your long term mortgage will be fixed, but your rent may go higher in the coming years. Louis notes that in that circumstance you could probably bear a reduction in your home value as your cost of shelter will remain low. Louis notes that while the Fed intends to keep rates low for the next couple of years, it may not follow that interest rates will remain low for two years. Louis notes that the ten year US treasury Note rate is lower than the inflation rate. Ryan says that is because people want the security of US treasuries due to uncertainty.  Louis notes that the uncertainty is due to the US perhaps not being able to pay its debt in ten years!   Louis and Ryan discuss gold and silver and note that they are rising in response the increase in the money supply. Louis notes that neither gold nor silver are in a bubble as they are  under held by institutions and individuals. Louis also notes that during the internet bubble the average person knew the names of many Internet stocks and probably owned them. In contrast, the average person probably couldn’t name some top silver and gold mining stocks and certainly don’t own them. Indeed there appears to be a lot of Americans selling gold to cash in on the high prices.

Part 3 (11:26)

Ryan and Louis discuss shadow inventory and the impact on home prices. Ryan argues that now is a good time to sell your home as more inventory may come onto the market in the coming 18 months.  Louis notes that 32% of homes sold in the second quarter were foreclosures and 19% were short sales. Louis and Ryan discuss the banks’ views on short sales and their reluctance and incentives not to do them.

Part 4 (4:08)

Ryan wraps up the show. Louis discuses what consumers can find on homegain.com

Listen to other Real Estate Radio shows with Louis Cammarosano

Listen to the Real Estate Radio show of August 15, 2011

Listen to the Real Estate Radio show of August 8, 2011

Listen to the Real Estate Radio show of July 25, 2011

Listen to the Real Estate Radio show of July 11, 2011

Listen to the Real Estate Radio show of June 27, 2011

Listen to the Real Estate Radio show of June 20, 2011

Listen to the Real Estate Radio show of June 13, 2011

Listen to the Real Estate Radio show of June 6, 2011

Listen to the Real Estate Radio show of May 23, 2011

Listen to the Real Estate Radio show of May 16, 2011

Listen to the Real Estate Radio show of May 9, 2011

Listen to the Real Estate Radio show of May 2, 2011

Listen to the Real Estate Radio show of April 25, 2011

Listen to the Real Estate Radio show of April 18, 2011

Listen to the Real Estate Radio show of April 11, 2011

Listen to the Real Estate Radio show of March 21, 2011

Listen to the Real Estate Radio show of March 14, 2011

Listen to the Real Estate Radio show of February 28, 2011

Listen to the Real Estate Radio show of January 24, 2011

Listen to the Real Estate Radio show of November 29, 2010

Listen to the complete archive of Louis Cammarosano on Real Estate Radio shows

Real estate radio interviews also available on Youtube

About the Real Estate Radio Network

The Real Estate Radio Network^® is a nationwide alliance of real estate related professionals with a common objective: delivering the timely truth about local Real Estate Markets over local radio stations.

The Real Estate Radio Network brings hard-working and ethical professionals in a community together. We provide the media and forum necessary for Consumers to learn the truth about important aspects of their financial life, which is mostly centered around their biggest investment, the home they live in. The Real Estate Radio Network® brings each radio program to the audience with a “live and local” show hosted by well-respected members in the local Real Estate and Financial community.

About Ryan Sloper

As a highly motivated mortgage consultant, with more than nine years of mortgage lending experience, Ryan Sloper has acquired a solid understanding of the local and national real estate markets. Ryan has been investing in residential and commercial real estate for the last 5 years, where he has first hand knowledge of what it takes to be a successful real estate investor. Ryan also hosts a weekly radio show, Real Estate Radio, which airs every Monday on 1580 AM in the Washington, DC Metro Area. Real Estate Radio also streams live nationally @ http://whfs.cbslocal.com/shows/real-estate-radio-with-ryan-sloper/

Louis Cammarosano