Though it’s hard to believe, the economy is recovering. That is what the Federal Reserve tells us anyway and we both agree. The said continued economic growth was based on the recent reading of Fed’s regional economies from the month of February to March.
In terms of housing, the Fed states it continues to lag other sectors however housing is demonstrating signs of improvement. Reports shows that inventory currently sits 9.8 percent above March 2010 level according to Realtor.com. Simultaneously, the number of households looking for homes is developing, signifying that demand may be strengthening in relationship to overall supply.
Freddie Mac also considers demand is heading up into the spring home-buying season. The data shows that the rate of inventory growth is sluggish.
We do not anticipate an astounding turnaround in housing, just a steady, slow improvement that is drawn along, together with the overall economy.
Small venture is always a dependable compass on the direction of the economy. Small business ventures are more optimistic in terms of their sales prospects and their ability to guard financing on more favorable terms. More sales in return, mean more investment in plants and inventory and more employees employs. As many quick to say: as the economy goes, so will go housing.
A big concern remains. As long as the economy remains to grow and more people continued to be employed, interest in housing will grow.
Today, mortgage rates stay passive: namely due to economic and political qualms in other parts of the world. Foreign debt markets such as disaster in Japan and in the Middle East have aided to keep rates low over the past few weeks. On the other hand, today’s disturbance will be short lived and pressure for higher rates will continue to climb.
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