Posted by Charles_CA on 8/6/05 11:13am
Msg #57364
FYI This business trend is cooling off
I just got this across my desk as a Realtor but I thought it ws pertinent to our business as well.
>>The Mortgage Bankers Association's index of mortgage application demand fell to 752.1 >>last week, as interest rates on fixed 30-year mortgages rose to their highest level since >>March.
>>Rates increased 11 basis points to an average of 5.83 percent. Nonetheless, most >>mortgage experts say rates should still be attractive to consumers looking to buy homes or >>refinance.
>>MBA reports that refinancing activity slid 3 percent and overall demand for U.S. home >>mortgages fell 0.3 percent during the week ended July 29. The organization reported that >>demand for purchase loans was up for the first time in four weeks, rising 1.9 percent; but >>the drop-off in refinancing activity continued last week, after an 11.4-percent decline the >>previous week.
Looks like business will return to a more reasonable pace. Remember that the Fed is likely to raise interest rates again this year according to Alan Greenspan and there will probably be another slowing in activity when that happens. All of you seasoned notaries should do just fine. Look for those who entered this busines just to make a killing, to kind of fade into the woodwork as the promise of easy money somewhere else gets their attention. The attrition will make your business better. You'll also start seeing some of the shakey SSs go under so make sure you stay on top of your receivables and don't let your due dates slip. Slipping due dates is one sure sign of financial trouble. In collecting debts the PITA collector is the one who gets paid first.
Best regards and have a great weekend.
Charles
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