More good economic news as the 2nd quarter gross domestic product numbers were revised up, the Chicago Purchasing Manager’s Index showed stronger than expected demand by companies in the mid-west, and the Case-Schiller Housing Index for the top 20 cities showed continued improvement in residential real estate pricing. Personal Incomes and spending rose in August and consumer sentiment came in higher as well. But these ‘better’ numbers are based off a depressed economic level and the closely watched ISM index showed that the economy has slowed from earlier this year. But I don’t think we’ll see a double dip. There are too many green shoots starting to emerge.
That said, remember that real estate is more local than national. If you want to know what will happen in YOUR market, look at your job growth. If you see job growth in your market you’ll see improvement in your real estate. If your job market is flat, your real estate values will be flat. The national economy affects local real estate because it affects local jobs. Gather the job growth numbers for your area to find out more specifically for your area.
This week 30 yr. fixed rates ranged between 4.25 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
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