This past week was a tough one. The most publicized negative economic information was GE missing profit estimates. Ge is so large and involved in so many different areas of our economy they represent a sort of bellwether, “as goes GE so goes corporate America, GDP, and the American economy”. Also, considerable job losses, consumer confidence at a 26 year low, and dismal retail sales reports for March added to worries of a deeper and more prolonged recession than economists and experts originally thought. This week’s retail sales, producer and consumer pricing, building permits, and housing starts reports should further solidify our economy’s shrinking position.
On a positive note, we do expect the 30 year fixed mortgage interest rate to remain below 6% for AAA borrowers and real estate inventory is shrinking slowly as prices in areas of abundant supply fall to stimulate demand. We view this as a significant buying opportunity with solid long term equity gains for investors and homeowners, alike. Also, we continue to see the rewards of razing and rebuilding, and renovating homes in highly desirable micro-markets throughout the country.
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you and your clients. David. 919.851.0999.