After a weak holiday shopping season, annual retail sales declined in 2008.  I know we did a smaller Christmas in our family and extended family

It is the first time annual Retail Sales declined since the government started tracking the data some 40-odd years ago.

It also gives nod to the notion that the U.S. economy is suffering through a deeper recession than I previously ever thought.  There was a large pullback in spending, especially in December which is the heaviest shopping month, this highlights just how cautious and tentative the nature of the American shopper.

I find it strange though that all of this may end up being good news for Spring Indiana home buyer.

The Retail Sales are so reflective of consumer spending, that a dramatic pullback helps to keep the economy in low gear, helping to counter act the inflationary impact of the government stimulus and direct intervention.  Don’t you wish you could get some bailout dollars.  And, I will remind you again that inflation, causes mortgage rates to rise.  And, when it is gone it helps to keep mortgage rates low.
I have not seen this low in a couple of years.

Keep in mind that it is earnings season on Wall Street and weak corporate return has spurred a 6-day retreat on the Dow.  As I have said more than a few times, as dollars leave the stock market, investors tend to put them in the safer world of bonds and mortgage backed securities, which further pushes rates down.

I really do think we are going to hit that magic 4.5% in the next couple of days or weeks.

Economic weakness, believe it or not, can be what we need to spur on the sales of new homes in the form reduced rates.  For active Indiana home buyers or those entering the market for a new home this Spring.

The timing may be just right.

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