As anticipated on September 18th, the Federal Reserve cut interest rates. To the delight of many the expected quarter point reduction was doubled with a half point reduction in the “Prime” rate.

This will give welcomed relief to many homeowners laboring to pay increasing monthly mortgages created by the sub-prime lending debacle. While the decrease in interest rates may not be enough to save all distressed homeowners the fact that the Fed was willing to intervene was more than enough to spark this year’s highest daily gain in the stock market of 335 points.

In an unrelated press conference today President Bush stated “these are unsettling times in the housing market”. President Bush reiterated that steps are being taken for the government to assist some homeowners refinance and again stated that the tax code was being revised to exclude any debt forgiveness by financial institutions in mortgage refinancing as income to the borrower.

The current tax code views this type of debt reduction as taxable income and would only add to the woes of distressed homeowners.

The President’s proposal of the tax code revision is a positive step for the housing industry and will help curtail the rising tidal wave of foreclosures.

~ Rhonda McMillan
Broker

Federal Reserve Chairman Ben Bernanke is expected to cut prime interest rates today in an effort to lessen the impact of the credit crunch that was created by the sub-prime mortgage market.

Most economists are predicting a quarter point cut while some economists are asking for a bolder half point slash.

The current 5.25 percent that banks charge other banks has not been cut in over four years.

It is unclear how much this expected cut will help distressed home owners that were caught up in the sub-prime lending schemes that offered teaser rates going into a mortgage that eventually place monthly home payments at an unsustainable rate that has lead the industry to record foreclosures.

I will keep you posted as we are most defiantly in a very volatile housing market.

Rhonda McMillan
~Broker

We are proud to report that the 12th Annual Columbia Heart Walk was the most successful Heart Walk that Columbia has had to date and that the All Pro Realty Team was a part of this historic fundraiser.

So far over $88,000 has been collected for the American Heart Association as a result of the Columbia Heart Walk and the money is still coming in.

The All Pro Realty Team fell short of our $500 goal by over $200 but already have plans to better organize next year for this worthy event.

“It was great fun and I am proud to have been a part” reported All Pro’s Vice President Brandon Parker. Brandon led the way for “Team All Pro with his VERY pregnant wife Katarina and 9 year old daughter Autumn.

Despite early morning thunder showers hundreds of Columbians turned out for the 8 mile march for health. The gathering at Stevens Park was accented with drawings, gifts, face painting and balloon sculpturing for children.

Local vendors like Subway and others supplied food and drinks while our premier local FM station The Eagle 93.9 served as MC.

“It was a blast to say the least and made even better by being for such a great cause” stated All Pro Realty Team Leader and Broker Rhonda McMillan who was last seen being shadowed by a beautiful red headed butterfly (her Grand Daughter – BreAnne).

The American Heart Association will continue to accept donations to the 2007 Heart Walk through September 30, 2007.  Any donations received after September 30th will be credited to the 2008 Columbia Heart Walk.  If you have donations that still need to be turned in you can drop them by the office, call 573-234-1487 to make pick up arrangements or you may mail your donations to:
 
American Heart Association
Attn:  Columbia Heart Walk
P.O. Box 30638
Columbia, MO 65205

The Labor Department announced today that an estimated 4,000 US jobs were lost last month despite a forecasted 110,000 job gain.

These job losses in August reflect the first and largest decline since August 2003 and are attributed to losses primarily in the construction, manufacturing and transportation sectors.

The fact is that all of these sector job losses are a direct result of the housing slump and we have NOT seen bottom yet. Our strong economy throughout the Bush Administration has had a record housing market as its core.

The lack of Consumer confidence created by the latest housing crisis and credit crunch has filtered through to employers that sense a storm on the horizon and have begun to “batten down the hatches”. I tend to agree we have only begun our journey down this slipper slope that sub-prime lenders have placed us on.

We will continue to see the economy adversely affected as this housing crisis plays out through all on next year as some mortgages will as much as double and thousands of homeowners are forced into foreclosure.

~Rhonda McMillan
Broker