rwbeagles-so anyone think this interest rate cut will help?

I think there's enough blame to go around, but ultimately, the buyer (or person refinancing) was responsible for knowing what they could afford. Greed truly got the best of everyone and now we're all seeing the consequences of that.

Yesterday, a lot of people lost a lot of money over here in Hong Kong, then also a lot of people made a lot of money also. We get a lot of bankers and investment people where I work. (at the bottom of the International Finance Center) The markets over here took a huge dive yesterday. But now everyone is waiting to see what this rate cut will do. Up or Down...One lady I talked to was $250,000HKD down. Ouch

jenn52

I wish it would help but until home prices go down, it ain't gonna help. The median house price in my area is $645k. We can't touch that. We rent an apartment right now and we really want a house, but there is nothing for under $400k (well maybe some really old nasty major fixer uppers in bad neighborhoods). But I don't think home prices will drop enough for us to ever get in. I mean honestly, a down on a $645 house is $129k, I can't save that much! We make a fair amount of money too. It sucks!!! I hate this whole housing disaster! Lower interest rates aren't gonna make it that much easier for first time homebuyers.

I truly feel for you and can't imagine how much things would need to change for the average person in that area to be able to afford a home. I grew up in Oxnard and we sold my dad's house there about 2 yrs ago after he passed away. I couldn't believe that it sold for over $500K and was a 1950s 3 bdrm, 2 bath little home that needed a lot of work. I can't imagine what people do for a living to afford to buy a first home.  It's mind-boggling. I have friends who bought homes near the beach many years ago and then sold them and moved. You can imagine how hard their kicking themselves these days.

Move to TX....2000+sqft for under $130K...and FT Worth was just voted in the top 10 for job seekers. I used to live in California...then I woke up...haha! *cackle*

I was listening to NPR yesterday on the way home from work... Gotta love it,,, news that is more than a sound clip.  At any rate, they were speaking to folks on just these topics.  Yup the market will correct, its all about cylces.  The ideas of tax rebates and tax cuts (people and business respectively) is being considered, but that money would not be avaliable until summer which would have limited impact on consumer spending in the short run.  The second thing is the idea of increasing money available for food stamps and assistance.  Actually I like that idea.  There are lots more people showing up at pantries and seeking assistance this year.  That might have more a short term shot in spending.... it would be getting money into the hands of folks who need it more.... Yes I know some folks would benefit unnecessarily, but at this moment in time,,,, I could maybe live with that.

I have to admit, the housing bust is not quite so bad in the typical rural, small town areas of the mid west.  Our prices didnt rise that much (compared to the boom areas).  And there seem to be fewer foreclosures overall... think is just a volume issue.  Houses aren't moving real quickly, which is a major change in this town from the period 20 years ago when we moved here.

 housing costs here arent as bad as in CA, and for the most part the new house market seems to be steady here (knock on wood). selling an existing house is a different story though. the biggest problem here for home buyer's is that the wages are depressed in this area... generally speaking.

rwbeagles

and FT Worth was just voted in the top 10 for job seekers.

Gina, do you know where you saw this or have a link to the article by any chance?  I was just looking for this the other day!  My brother in law just got out of the military with no skills he can apply to a normal job now.  He is living in Atlanta and having a VERY hard time finding a job and one that will pay the bills.  He is considering moving in with us for a couple months and seeing what he can find around here.

 i feel sorry for your brother. i lived in atlanta for a few years. even with me and my wife working it was a financial struggle. the wages there seem to be really low compared to the cost of living.

Here it is....

NEWS LINK

I do too and he has a wife, one kid that lives with him and one whose mom gets child support based on what his military wages were.  It has been a very rude awakening for them.  He really wants to move here b/c a lot of his family is here but her parents live there and I *think* that is where she wants to be.  I have heard Atlanta is a hard job market to be in.  Plus, we have Lockheed and Vought here where he may be able to get his foot in the door with his military background....or at ATT with my husband possibly.

Bummer he missed this! But still some of the co's listed could be helpful to him,...so here is the article...

Veteran Job Fair

Wow!  That is an AWESOME link!  I sent it on to him as well.  It looks like they will have more of them in 2008 as well.  Thanks!!!!

It seems like home prices should be dropping in a lot of places, even CA, due to the number of houses in foreclosure. And sorry - I still lay a lot of this mess at the feet of the lenders.  They're supposed to be the financial experts, not JQ Public.  It's their job to qualify the homebuyers for their loans and I'm pretty sure the guideline they're supposed to use is that the monthly mortgage payment can't be over 1/3 of the income. It looks like a lot of people were "qualified" who shouldn't have been or who were right on the line. The lenders were more concerned with making the loan than they were in whether the homebuyer would be able to keep the house. Once the loan is a "done deal" they have no responsibility. A lot of people were also talked into ARMs without realizing how devastating that would be.  A lot of these lenders are  very smooth talkers and people without a lot of financial savvy can be easily talked into things that are definitely not in their best interest.

Joyce