I wanted to show you this article. The source is from the Mortgage Bankers Association, National Homebuiders Association, Inside Mortgage Finance. Very interesting article and there is more to come. Stay tuned!!

Today's media plays up bad economic news now more than ever, which leads to misconceptions about economic realty. Our economy is extremely strong, profits are superb and the world economy is exploding.

All you read and hear is that real estate is going down, yet last month, prices in the U.S. rose 3.4% from a year ago and California is up almost 1%. The Bay Area prices have gained 4.1% over last year and southern California median price is up 3.7%.

Foreclosures are suppose to be at a record high but last year 98.83% of mortgages did not go to foreclosure. Today, the Bay Area's foreclosure rate is up only 1.5% over last year while southern California's foreclosure rate is up 2%.

The media reported 53,942 notices of default for the 2nd Quarter - a near record high. They are comparing it to the 1 st Q. of '96 when 61,541 notices were filed but fail to mention that 2 million more homes have been built in California since then!

What if the media's headlines read: 99.2% of mortgages are NOT in forclosure?

The media and the financial markets have greatly over-reacted, to the real problems that have been revealed in the lending marketplace, which is typical.

Well that sums it up. If you have any questions please call me. Also, if you want to know more about what is going on in our market place, just call. We are here to help you!