Home > Economics > One Third of Americans Unable to Get 30 Year Mortgages in September 2010

One Third of Americans Unable to Get 30 Year Mortgages in September 2010

Today’s article made me think a lot about my future moves.  Before I get into those here is the breif version of the article I’m featuring.File:Federal Funds Rate 1954 thru 2009 effective.svg

“Would-be homeowners with credit scores below 620 points were largely unable to take out 30-year mortgages in the first half of September, even if they offered down payments as high as 25 percent…”

My thoughts on this are as follows:

If  most people with credit scores below 620 are not able to get home loans the housing market will not be recovering anytime soon.  If the housing market will not be recovering anytime soon I don’t see interest rates going up anytime soon.  If interest rates don’t go up anytime soon, hyper-inflation is almost immanent.

Although these seem like some bad things there are always ways to make money in a market like this.

1. Hyper-inflation causes the dollar to fall in value substantially compared to other currencies and precious metals.  I’m a big fan of silver if you haven’t read my earlier posts.

2. If people can’t buy houses they’ll need to start renting houses.  If you already have rental property or can afford one, I expect rent prices to rocket in the next few years.

I’m sure you can come up with other ways to hedge yourself against the future economic turmoil, but as for me and my house were moving our dollars into precious metals and holding onto our rental properties.

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