Hidden underneath all the headlines and stories on the proposed government health plan, there are signs of encouraging news that the recession may be easing.
The first full week of August saw some positive results in economic activity, but the news of the declining unemployment rate made investors optimistic. For the first time in the past 17 months fewer job losses were posted and we saw an improved unemployment rate. July saw the lowest number of job losses all year, and the number came in much lower than anticipated. The stock market climbed upward as well. The Dow is now up almost 7% for the year.
This isn’t to say the recovery is in full swing yet, but don’t we all deserve some good news!
And, we saw another positive housing report too. Pending home sales jumped an unexpected 3.6%, when a 0.7% increase was predicted by the experts. We’ve now seen 5 consecutive months of gains in pending contracts. That’s the first time since July 2003 we’ve seen that happen! Affordable home prices and low interest rates have been driving the market upwards. Construction spending was up slightly as well, much better than the drop that was expected.
The 28 major markets the real estate experts watch saw a drop in inventory of 2.5% from June. (The average drop over the last 25 years from June to July is 1%) AND, compared with the inventory in July 2008, there was a big drop of 27%!
Mortgage interest rates are still holding at low levels as well.
At InSight Mortgage Group we’re available to answer your questions regarding new home purchase loans or refinancing your current loan. Call us, 913-642-3334 or email us at michele@wantinsight.com or dickw@wantinsight.com. Look to us for integrity and ethical handling of your financial transactions. Blessings.
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