On a positive note oil has dropped almost $30/barrel, strengthening a weakened dollar and easing immediate inflationary concerns for the Fed. However, weak retail sales and fears of a global recession are hammering world markets and holding mortgage interest rates at their highest levels in some time. Also, unemployment numbers are very high as businesses shrinks during these tough economic times. We will look to the consumer pricing report and the weekly initial jobless claims tomorrow for further insight into the short term outlook for our economy.
Real estate continues to falter and those preliminary signs of a recovery in housing have been dashed as consumers seem to be circling the recessionary wagons and corporate America, especially the financial sector, continues to report losses, raise and hoard cash, and keep the purse strings tightly closed on extending credit. With this year’s buying season coming to a close we do not forecast a recovery in housing until possibly the spring of 2009. In speaking with real estate colleagues in previously insulated and less affected markets, they are indicating a slowing as well since buyers are unable to sell their current home and cannot qualify for two mortgages.
During these uncertain economic times it is imperative that our clients and colleagues keep their personal and professional finances in peak operating condition. Call the David M. Damare’ Team for a complete mortgage analysis and basic financial advice to ensure your short and long term goals are being met so as to secure your financial lifestyle.
“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.