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 and this is the PERFECT time to buy. 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, if you are interested in buying a home, you are flat out SILLY if you don’t write a contract and lock in on an interest rate asap!
State Bond Money is now at $3.9 million with a rate of 5.65% and 3.5% Down Payment Assistance. Please keep in mind that the expiration date for this Bond Issue is the 30th of April. Which means if you are interested in Down Payment Assistance then you need to get moving and the loan must close by the 30th of April.
This week rates ended up between 4.75% and 5.0%, depending on program, credit and points. Have a great weekend and call Ted if you are ready to get pre approved to buy!
