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INDIVIDUAL NEWS ARTICLE
CARLOS GOMEZ
ECO/372
3/03/2014
DARYLL BAKER

INDIVIDUAL NEWS ARTICLE

The news article I would like to talk about is Real Estate and Rates. Real Estate is the heart of the economy for the United States of America. Lot of businesses and jobs relay on the Real Estate market. The way the Real Estate market works in the US, is very critical. It can move and change dramatically. For example when the rates also known as APR are low, and the Real Estate market equity sky rockets, well it tends for lenders to lend out money in a more lenient way. Having so many prospect buyers and sellers, of course it depends on a prospect FICO scores, but when the market is booming, the money is moving. It gives the investors and first time homeowner purchase homes that are in the market at a reasonable price, with a great rate on the home loan. This cycle helps many businesses, since lenders are lending, well investors or homeowners start to remodel their homes. These actions can be from adding some landscaping to their properties. Also if they are adding a pool or perhaps renovating their kitchen. Businesses start to get large work orders and that helps the economy of the US. Realtors tend to get busy and they start to go out more often to restaurants for meetings with prospect buyers or sellers. Giving the hospitality industry a financial boom as well. Fortunately for the US, this creates a financial boost. Now it also benefits the buyers, when the rates of the lenders are low. For example in today’s market APR’s can start as low as 3.2 percent on a 30 year fixed. Every lender is different and depending on their rate sheet and Fico of the prospect is how it is determined what the qualification is. Low APR’s, mean lower payment for the prospects. Now in our present era since the big crash of 2008, lenders have tended to be more cautious,

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