Tuesday, July 15, 2014

Economic Update

The numbers are in and news from the National Association of Home Builders suggests a slow but steady growth in the housing market throughout the first half of the year. Getting off to a slow first quarter, it seems the market is starting to find its footing. Pending home sales reported the largest month-to-month increase this decade, accompanied by strong existing and new home sales. Builders are still reporting shortages in labor but it does not appear to be slowing trends down. While cautious, investors seem to be investing their money in the right sectors that will produce long-term results. 
Another report from the Census Bureau estimated residential construction spending increased as well as in the single and multifamily home markets. This information is on the heels of a growth in the labor market with the average unemployment rate falling to 6.1%, down 1.4% from the same time last year.
With just a small stumble with the GDP, but overall positive numbers, analysts are predicting a steady climb for the second half of the year and into the next. Consumer confidence has grown over the past quarter with the Consumer Confidence Index hitting its highest level of 85.2, something not achieved since 2008!  
Overall, economic growth remains slow but steady. Mortgage interest rates remain historically low making this a great time to buy!