Economic woes continue in US markets
Posted July 11, 2012
Overall it seems as though our economic headwinds are certainly getting stronger. Six Investment banks cut US growth forecasts today, citing tighter economic conditions here at home and across the globe.
To echo that sentiment, the Fed Minutes from June were released today, indicating that there is still quite a cautious tone to their rhetoric. The Fed noted that Consumer Sentiment was lower in June than we had seen previously this year, and that while housing was improving, it was still being restrained by tighter credit standards. Global Markets were also a concern, but even with the cautious tone, there was still no concrete mention of when, or if, QE3 will arrive.
Mortgage Applications were down for the week ending July 6th according to the Mortgage Bankers Application Index. Overall the index dropped by 2.1% for the week, with refinancing leading the way with a 3.4% decline. Purchases actually rose 3.3% for the same period, which is good news for home sales.
North Carolina ranked #4 in the US for top business states according to a recent poll out by CNBC. We were ranked #3 in 2011 but still gained high marks in categories such as the cost of doing business, quality of life, well-educated borrower base, access to capital, etc.
Mortgage Rates continue their strong path, but we have to wonder how long it will take for these weaker economic conditions to begin to influence Triangle housing in a negative manner?