|Economic news continues to be a mixed bag with some scary and some not so scary. I bought new shoes this week…which made me think: ‘As stuff wears out, we can only go so long before we make the decision to buy’. Apparently I am not alone as, interestingly enough, Gross Domestic Product (GDP) showed a rise of 2.0% during the 3rd Quarter with most of that growth coming from consumer spending, a good sign that consumers are starting to buy again. Orders for durable goods, products lasting more than 3 years, rose 3.3% in September, also good sign. BUT when we strip out transportation (read that ‘airplanes’), orders fell -0.8%. And overall, the mood is still a bit gloomy as Consumer Sentiment came in in at 67.7, the lowest reading of the year. It will be interesting to see how Consumer Sentiment may change in the months following the midterm elections. But what does this mixed bag of economic news mean you to? Three things:
1) People still need to buy and sell, so there ARE buyers out there;
2)Buyers will have to talk to Realtors to get over their fears that come from the negative news, and remind them of the positive news;
3) We STILL have HISTORIC affordability – low rates that continue NOT to go lower and low house prices that WON’T be there in the future.
So, don’t be scared. Remember, after Halloween and then Thanksgiving, after that, a season filled with joy.
This week 30 yr. fixed rates ranged between 4.0% and 4.25% depending on program, credit and points.
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963