The recession continues to gain momentum as consumer confidence is reported at its lowest level in 35 years. Last week’s .75 point is being overshadowed by the consumer confidence report as well as the Bear Stearns’ debacle and the continued loss of equity in homes throughout the country. There is a wealth of economic data reporting this week. Existing home sales for February reported slightly higher than expectations. We will look to new home sales and durable goods sales reports on Wednesday, jobless claims and GDP reports on Thursday, and personal income and consumption as well as consumer sentiment on Friday for future direction as to the short term and long term outlook for our economy.
Existing home sales improved in February as home prices continued to decline. We feel this is a normal correction in response to the unprecedented gains in home equity over the past five years and see this as a buying opportunities with a significant upside in many areas of the country for the patient investor/homeowner.
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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.
