The economic news this week reconfirms that the economy is moving forward but slowly. Durable goods orders ex-transportation (i.e. without airplanes which sometimes artificially skew the numbers) were the best we’ve seen in 5 months and corporate profits continue to improve. Housing sales and starts came in lower than last year but have stabilized since the sharp drop off in July that was due to the post-sugar high created by the home buyer tax credit. The good news here is that we are dealing with ‘real’ housing numbers and not ones artificially influenced by a government program. The ‘real’ housing economy is slow, but IS moving forward as the overall economy continues to slowly improve.
If you are looking to buy, look at the interest rates, current house prices, and job growth in the region and then you will know right now is truly a good time to buy(below is a link to a USA Today article on job growth in our areas). ‘Affordability’ is the watch word. With the adjustment in house prices and rates, today’s payment could be anywhere from 75%-60% of what it was 2 years ago, and the local and national indexes are showing that house prices have bottomed, it’s a no brainer to buy today.
This week 30 yr. fixed rates ranged between 4.125 and 4.375% depending on program, credit and points.
Link for USA Today article: http://www.usatoday.com/money/economy/2009-02-06-new-jobs-growth-graphic_N.htm
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963