Sunday, June 10, 2007

Urgent : FLASH: PIMCO's bond guru Bill Gross predicts US housing market to be "decimated"

Hello all, James Gage here; when I read this I had to immediately post for your review and consideration. If this is true, it opens up a tremendous opportunity for us as investors; there will be 2 options (forgive the pun) for most people: 1. Become a renter or 2. Lease Option a property. That being said please read the rest of the comments by Bill Gross, and if you have any questions please do not hesitate to contact me.

“These increases in rates over the past few days have placed the 30-year mortgage market at close to 7% in conventional terms,” said Gross, chief investment officer for Pacific Investment Management Co. and manager of the world's largest bond fund.

“This will decimate the housing market if it wasn’t already decimated before, and certainly put the Fed on hold, and maybe allow the Fed to reduce rates…six to nine months from now.”