Rates to remain STEADY

Fed Won’t Change Rate Until 2012 on Labor Woes

June 23 (Bloomberg) -- The U.S. Federal Reserve will keep its key rate unchanged until 2012 because of high unemployment and low inflation, said Edward McKelvey, senior U.S. economist at Goldman Sachs Group Inc. in New York.
Goldman predicts no rate change until 2012 “because the unemployment rate is very high, because inflation is well below the Fed’s objective, and is actually drifting down,” McKelvey said in an interview with Bloomberg Television’s “Inside Track” program today. “They’re really missing on both their targets and there’s no reason to raise rates at this point.”
Fed officials, who are likely to repeat the commitment to an “extended period” of low interest rates in a Washington meeting today, are contending with joblessness that’s still close to a 26-year high. Rising foreclosures and a drop in new home sales are threatening to harm the recovery.
Weaker home sales are “the reflection of an extreme excess supply in the industry which has been apparent for several years and will persist for a while,” McKelvey said. “As long as that’s the case it’s hard to forecast significant improvement.”


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Hello Neighbors,
I just wanted to pass along some statistics.
Jim, our Broker and owner of Neighborly conducted a specific search today and here are his results. -----

I did a quick search for a client today, using some very high level criteria:

- 2000 to 2500 square feet
- $220,000 to $300,000
- 3 to 4 bedrooms
- 2 to 3 bathrooms
- 1990 or newer construction
- Single and Two stories
- Rocklin, Roseville, Granite Bay.

The results?

Not much fun.


77 homes came up in the search.
Of those 77:

- 70 are short sales!
- 1 is a HUD / HomeSteps home
- 1 is bank owned (a foreclosure)
- the other 5 are in a variety of different statuses.

Over 90% of these homes are in Short Sale status.


Buyers - THANK YOU for sticking with us as we continue to work through the short sale offer and escrow processes.