Take me back to the GREAT DEPRESSION...

The US Housing Market is in its worse slump since the Great Depression. What's that mean to you?

Possibly nothing I suppose.

It really means nothing if you have 12-24 months living expense cash on hand, and won't be losing your job.

So, what can you do to protect yourself?

Cash will be king, just as it was in past history.

So where can you get cash? How about your home? But, you better do it quickly as prices are expected to plummet more in 2008 and into 2009. According to a Moody's Economy.com survey, many metro areas will record losses of 20% or more.

It's time to consider ways you have never thought of before to make it through the tough times.

Before the equity in your home is completly gone, you need to consider getting some of it out and keep a reserve fund, and at the same time allow that money to grow.

Think of the 30,000 Ford workers who lost their jobs. What if you job was gone tomorrow.

Gather with family this Holiday season and rejoice all the successes you had this year and start 2008 with a new plan to keep your family and your finances safe.

Don't forget, for more Real Estate and Finance information, tune into AM-870 KRLA Sunday's at 6pm for Straight Talk Real Estate. You can also listen online at www.StraightTalkRE.com.

Have a Merry Christmas and Happy New Year

~ Chuck

2008 Mortgage Interest Rate Projection

Don't we all wish we had a crystal ball when it came to predicting interest rates????

If you take a look at a comparison of the 10 Year Bond Yield versus the average 30 year fixed interest rate, you will notice an interesting phenomenom. Historical, both are down in the last quarter of the year compared to the summer of the same year.

Continue to look into the first quarter of the next year. In all but two years in the last 10, rates continue to lower through the first quarter of the new year. In the two cases where they rose in the first quarter, they actually lowered throughout February.

This historical data alone, lead me to believe that interest rates will continue to drop througout the first quarter of the new year.

More importatntly in today's market is the volitialty in the current markets. As the Fed's prepare to meet December 11th, we're almost 100% certatin they will lower the fed's funds rate by another .25% if not .5%. Remember though, generally when the fed's lower the overnight rate, mortgage rates will tick higher.

I don't see that being the case right now. Lenders seem to be pricing in a .5% rate cut and it looks like the 30 year conforming rates will remain low, pushing themselves back into the mid to high 5% range at no points.

Don't forget to get up to the minute info every Sunday night at 6pm on KRLA AM-870 with Straight Talk Real Estate.

~ CHUCK