Interest Rates Plummet.
Did the Houston Flood assist in this?
It doesn’t get much worse than this. I heard from a reliable source that many of the Hurricane Katrina survivors relocated to Houston, only to go round 2 with a Hurricane.
What does this mean for the markets moving forward? No pun intended, the bond market is going to be flooded with CASH. Cash to bond markets means flight to safety. Is this natures way of telling how we are in trouble? Or, is this the markets way of correcting and making it look like the natural disaster would be the reason for the correction or cause for the blame?
Insurers are going to get slammed. When catastrophic events like this happen, MORTGAGE defaults happen. Mortgage defaults means additional losses for banks. It means derogatory credit for borrowers who lost everything. It means late payments and possible foreclosures. This is just a sad experience and I know my heart goes out to all impacted by this.
This mess is going to take a long time to clean up. Just like we are now still recovering from the 2008 economic collapse, Houston will be spending the next decade doing the same. Events like this are tragic, but the sense of community that is happening makes a bright spot in a not so bright happening. People truly care and want to help. With that, my mortgage team is donating $1,000 for every loan we close in the month of SEPTEMBER. Why? Because it is the right thing to do. The reason people make money is to give back and help those less fortunate. That my friend, is how the world goes round.
Houston, your problem, is our problem. And we are assisting with any and every solution.
By the way, Interest rates are headed much lower.
The Mortgage Quarterback