Its official, we are in a Recession
Its official, we are in a Recession and have been for nearly a year. It is a sign of our market when the reaction to what was so feared was relatively calm. Of course we have all known or been hip to the fact that we were in a recession for some time. In fact, a CNN study showed that the economy became public concern #1 in November 2007 and has not let up since. On average, a recession lasts 16 months so if you are a glass half-full kind of individual this is relatively good news! Check out this article for more info (full text link - http://money.cnn.com/2008/12/03/news/economy/karydakis.recession.fortune/?postversion=2008120312)
Volatility has continued in the mortgage rate market, but things are still looking extremely positive. Our expectation is for rates to stay low while moderately bouncing off into the 6%’s as a ceiling for some time. Down the road, when inflation will likely come back into play (especially considering the recent increase in the Money Supply) we may see rates start to change course. For now, let’s enjoy this and spread the word on the rate environment we are in. (attached is an excerpt from our client only Blogsite that you may want to use or pull from for a communication to your database – feel free to R&D).
I know interest rates alone do not help you sell homes, but they do play a part (purchase applications were up 38% nationwide last week). Another factor that may help is an increase in your clients confidence in their personal investments. If their wealth improves, so may their attitude about purchasing Real Estate. I had a client mention to me today that he now has a 200.5K. Yikes! Here are a few key dates to put on your calendar and even share in your newsletters, emails or regular database calls.
December 9th – Could be big news for the auto industry
2. Dec 16th – Good chance of a global rate cut
3. Jan 2nd – SEC Chairman Chris Cox may relax FASB 157 (Mark to Market).
DeDepending on the outcome of these 3 key dates – we may very well see a big comeback in the stock market. Some experts are predicting a pretty wild comeback, so stay tuned!
Please let me know if you have any questions. Thank you for your time!
Jeremy A. House, a Certified Mortgage Planner
480-755-1404 office or 602-435-2149 mobile/direct or JHouse@PrimeLending.com – Email
Prime Lending, A Plains Capital Company
