Last week’s stock market rally sputtered to a stop Friday and all three major indexes opened on the down side this morning as anaylsts argue about the validity of the bank stress test results released last Thursday. But this was expected, so I don’t think there will be a major collapse of stock prices this week because of the stress tests. So far this week has been fairly flat in trading.

 
Meanwhile lenders STILL aren’t lending as they should. Nor are they modifying existing mortgages as they should. If you are angry about this and want to take action, I encourage you to write and call your elected government representatives. Your voice needs to be heard!

 
The local real estate market is heating up. Although sales figures are obviously still down comparatively from peak years, activity surrounding sales is up, a good sign. Pricing of listed properties still takes a hit in this buyer’s market, but we’re seeing numbers begin to reflect a slowing of the downward trend. Low mortgage rates are a help since this allows people to better afford Bay Area sized mortgages. I think we really are starting to see a recovery on the horizon, albeit one that has some bumps in the road ahead.

 
Next on the agenda is credit card reform. Long overdue scrutiny of credit card terms is on the Obama table, despite a huge lobbying effort by revolving debt lenders. It’s interesting to note that Capital One is now eagerly raising funds to pay back the TARP funds it received, because CEOs don’t want to conform to government rules and oversight.

 
How does this affect you? The new HVCC law, (Home Valuation Code of Conduct) which puts appraisals under the control of unscrupulous lenders means that Realtors are under more pressure than ever when it comes to property listing pricing. It also means that offers and contracts should allow additional time to close… probably at least 30 days. Major lenders are very slow to process loans right now. Be sure to have backup plans in place if one lender falls through on your purchase deals! Seller carry backs are not being allowed by many lenders right now, so use caution with these if you can. Remember, everything changes eventually. So hang in there!