With home loan rates continuing to be near an all-time low, many are wondering how recent economic activity will continue to affect the state of the housing market. Recent reports offer both good and bad news regarding the economy as well as the housing market and give insights as to the immediate future of home loan rates as we move through September.
The Standard & Poor’s 500 Index, or S&P 500, recently rose above it’s highest closing level since 2008 with all ten industry groups advancing within the S&P 500. The European Central Bank announced recently specifics of a bond-buying plan which boosted optimism in American markets given the recent European economic crisis.
This recent news comes in conjunction with a recent announcement by the ADP Employer Services which stated that there was a 200,000 increase in employment in the month of August. Jobless Claims also dropped by 12,000 to 365,000 in the week ended September 1st, this putting Jobless Claims at the lowest level in about a month according to the Labor Department.
With the recent good news out of American Markets, economic reports, as well as Europe, not all news has been good news, though. Consumer Confidence continues to hover near an eight-month low and is experiencing little change despite efforts by retailers. This news does not mean that you should consider putting off purchasing a new home, however.
The Effect on You
The important thing to take away from the recent economic news is that now continues to be a perfect time to buy or refinance a home. Remember, weak or declining economic news causes money to flow into Bonds which, in turn, helps home loan rates. While another round of bond buying might be ahead, it’s still a great time to buy or refinance a home.
If you are in the market to purchase a new home, today’s market environment is very promising and offers many opportunities. I would be glad to help you.