The new normal is what this week is all about. The economic data shows that the pace of the recovery has slowed. While new home sales came in above last month’s numbers, the level is still low by comparison to prior years. Businesses are ordering less durable goods (big stuff) and unemployment remains stubborn. But this does NOT mean that the recovery is ending. It DOES mean that we are in a ‘new normal’.
The economic melt down that occurred in ‘07 and ‘08 (wow, has it been that long?) shrunk our economic engine. Now there is less income and fewer assets to create growth, so growth is slower. Not only that, but it’s like when you lost your job and you charged your living expenses. Now that you have a job, you have less to spend on current stuff because you’re still paying for the stuff you put on the Visa card. It just takes more time to buy that new car or TV you wanted. In short, we have a lot excess we have to work through (housing, manufacturing capacity, etc.) with less to work though it with (slower GDP), so it takes longer at a slower pace.
But DON’T let the numbers fool you. We are still recovering. Affordability has never been better. It’s actually a GREAT time to be buying a home.
This week Freddie Mac’s 30 yr. fixed rate survey stayed basically the same at 4.6 %, depending on program, credit and points.
Senior Loan Officer
Senior Loan Consultant
NMLSR # 217991
OK License # MLO01963
Office: 405-341-8644 x 102
WR Starkey Mortgage, LLP NMLSR # 2146
10 E. Campbell
Edmond, OK 73034