On Monday May 2, 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 (24:18)
Ryan discusses the death of Osama Bin Laden;Ryan reviews the economic news of the week;Ryan notices the correlation between increased home sales and interest rate drops;Louis notes we can’t expect the housing market to be supported by further decreases in rates as they are already near historic lows;Ryan explains that interest rates change once every four hours; Ryan notes the difference between getting a quote and being locked in to an interest rate; Ryan advises the importance of keeping in touch with your mortgage lender;Louis notes that interest rates change a lot faster than home prices; Ryan notes that the consumer confidence was up,Ryan and Louis discuss the Fed’s decision to keep interest rates where they are and to continue the $600 billion QE2 program; Ryan and Louis discuss the Fed’s view that inflation is nascent;Louis notes that not only does the Fed not see inflation that exists but disclaims any responsibility for it; Louis asserts that there is a correlation between oil prices and Fed policy; Louis discusses Ben Bernanke’s assertion that the Fed can’t control oil prices but that they somehow can control the impact of higher oil prices on the rest of the economy; Louis also remarks on Bernanke’s view of the dollar-the claim that a strong dollar can be achieved through the Fed’s current policy as it is their belief that they are creating a sound economy and therefore a sound dollar; Louis notes the irony of the Fed chastising Congress’ spendthrift ways – if the Fed did not monetize the debt, Congress could’nt spend;Louis noted that as Bernanke spoke the prices of gold and silver rose as it seemed that the Fed has no interest in cutting off the easy money;the current Fed policy will keep interest rates low; Ryan notes that the Fed knows that they can’t let interest rates rise because of the housing mess; Louis notes that the Fed has a Hobson’s Choice-either keep rates low or let interest rates rise and cut off the recovery. Ryan noted that the Fed claimed oil prices rose due to demand from emerging markets;Ryan notes that countries are trying to get away from using the dollar as a means of settling transactions;Louis and Ryan talk about the impacts of inflation on potential home buyers’ ability to purchase a home; Gas prices around $4.29 in the DC metro area and San Franciso Bay area;Louis notes that food, energy and housing are the main expenditures of consumers and if the cost of rent is more than cost of ownership, it makes sense to buy;Ryan notes that one in four renters spend half of the paycheck on rent and utilities;Louis and Ryan talk about the difference between real estate investment and real estate speculation.