Here is an Excellent Article From
One of my Preferred Lenders:
What will this year bring? What’s happening now…and what does it
mean? We’ve got the answers you need!
The bottom line is that the U.S. has been slowing but steadily
climbing out of the recession. This looks to be the year when the recovery final takes hold in
such a way that more Americans will begin to feel it.
1. Stable energy and commodity prices—Energy and non-food commodity prices appear to be holding fairly
steady. There may be small blips of changes, but energy and transportation
prices shouldn’t spike in the coming year.
2. Low inflation—Stable
energy and commodity prices will help keep inflation in check. That
is good for Bonds, and anything good for Bonds is also good for home loan
rates. After all, home loan rates are tied to Mortgage Bonds.
3. Interest rates low for a long time—The Fed is buying $85 Billion a month, which helps keep interest
rates low. Even when the Fed starts winding down its holdings, it will do so
slowly and transparently—so there isn’t fear of a huge spike.
4. Labor market slowly healing—There
are a lot of demographics that look good for employment in the coming year.
That doesn’t mean we’ll see a huge growth in jobs or decrease in the
unemployment rate, but the trend is moving steadily in the right direction.
5. Corporate sector is rocking and net worth is up—Profits for the Stock market have been spectacular.
These increases and improving home prices have improved household net
worth. Consumers are feeling better and more comfortable making
purchases.
6. Europe looks better—The bottom
line is that Europe has cauterized its wounds so the big concerns of the past
couple years should be under control. That’s good news for the global economy,
including the U.S. economy.
7. Auto sales are fantastic—Auto sales
have been doing better over the last couple of years…and are in a solid
position. In addition, consumers who have been holding on to older cars for
years are beginning to purchase. That’s good for jobs and the larger economy.
8. Housing prices on the rise and inventories falling—The average house price has returned to normal, when compared to
long-term numbers. That means housing prices have bottomed out and are even
starting to rise in many areas. The number of homes sitting on the market has
come down dramatically and fewer are coming on the market.
9. Housing starts and sales are up—Decreasing inventories has led to more home building.
There are still a number of people who are working on improving their credit
scores or saving up for a down payment. Those people may continue renting in
2013, but may be positioned to enter home ownership in 2014.
10. Lending loosening up—Lending
peaked in 2008 and then dropped dramatically as lending restrictions tightened.
In recent months, however, lending has begun to loosen as balance sheets are
cleaned up, more people have down payments saved, and more people enter the
labor force.
Article submitted from Lisa Millham
Mortgage Loan Consultant
Security
National Mtg.
Mortgage Success
Source, LLC
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