Bottom line this week? We are flat. Unemployment remained basically flat for the 2nd month in a row while productivity and economic output are strong.
Think of the economy as a large ocean liner…say the Titanic…trying to stop while heading toward an iceberg. Its momentum won’t let it slow down and avoid disaster so it keeps on moving until it slowly comes to a halt and begins to back up. Then, once it reverses direction, it takes a long time to get back up to speed. This week’s reports show that we have stopped. And while we aren’t doing any more damage to the ship, it will take a while to repair the damage and even longer to get back up to speed.
Though we may see some surprises, we’ve started the road back to a healthy economy. The GDP is good, temporary worker numbers are good, inventory numbers are in line, and the massive layoffs have stopped. But make no mistake, while THIS Titanic won’t sink, it will take several years to get back up to speed.
Remember – Fed stops buying mortgages in 3 weeks – bad for rates – and buyers only have 7 weeks to contract for a home or the LOOSE forever the $6,500-$8,000 Uncle Sam will give them. Hey, flat out tell them they are STUPID if they don’t contract and lock in their rate!
This week rates ended up between 4.75% and 5.0%, depending on program, credit and points. Have a great weekend and have your buyers call us so we can get them approved to buy.
Written by Steve Akin, WR Starkey
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Thanks for writing, I very much liked your newest post. I think you should post more frequently, you evidently have natural ability for blogging!