Good news on the corporate earnings front this week as Alcoa, Intel and CSX all beat expectations. However, we need to temper these numbers as they represent April, May and June. This week’s report showed lower retail sales with fewer people buying durable goods (appliances, computers, etc.). Add to that lower consumer sentiment numbers and you can see that the robust recovery numbers from the spring have slowed a bit. But I’m NOT pessimistic because with 90% employment we’re still a pretty big economic engine and people ARE buying houses and other stuff, it’s just that inventories aren’t having to be rebuilt like they were 6 months ago. The good news is that there is virtually no inflation, 1% for the core CPI, so rates remain at record lows. And once all of the political regulation is settled in DC, you’ll see companies start hiring again.
The question is, “How will YOUR business flourish in the meantime?” ATTITUDE! You can buy into all the uncertainty and stagnate or you can bang your drum and tell people just how awesome an opportunity is before them. Do you realize the payment that bought a $200,000 home 6 months ago now buys a $220,000 home??? That’s a $20,000 bonus for buyers. T-W-E-N-T-Y THOUSAND!
This week 30 yr fixed rates ranged between 4.25% and 4.625% depending on program, credit and points.
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