So this morning, Renae Stucki Realtor was listening to the Marketplace morning report and heard this startling story about banks reporting record profits. You can read about the piece on their website HERE.
Bank profits are way up and lending is way down. How can that be? Well, if you remember the article we posted about how traditional mortgages favored the buyer over the banks and how they would get rid of them if they could… You can start to see a trend happening.
By reigning back on lending, banks retain more money at their disposal. As the stock market goes up, profits go up and because they have more money and buying power, bigger profits!
Take away the money banks have to pay back the American people and money lost in law suits… and banks are more profitable than ever!
They will continue to move away from customer based growth and eventually, products that favor their customers may vanish all together.
What does this mean for you? Well, it heralds a time when the only people buying homes will be those who can pay cash or those who find other non-traditional ways of paying for their property.
We continue to urge those considering buying to get into the market now and in light of this story, we urge you even more strongly. The longer you wait, the possibility of getting a mortgage decreases. Why take the chance of missing out? Contact Renae today.
