“I think I can. I think I can.” The Little Engine That Could. After chugging along for some time, there’s a sign that the U.S. economy may be gaining some much needed steam.
The final reading of second quarter Gross Domestic Product (GDP) rose by 4.6 percent, led by a spike in exports and business investments. The reading, which matched estimates, was up from the previous reading of 4.2 percent for the second quarter. And, perhaps more importantly, the reading was up from the anemic -2.1 percent reading in the first quarter of this year. GDP measures the value of all goods and services produced by the U.S., and it is considered the broadest measure of economic activity. It will be important to see if readings for the third quarter of 2014 continue to move in this direction.
There was mixed news from the housing sector, as August New Home Sales surged to the highest level since 2008, up 18 percent from July to an annualized rate of 504,000 units. This was the first gain in New Home Sales since May. However, August Existing Home Sales declined by nearly 2 percent from July to an annual rate of 5.05 million units. This was the first decline in Existing Home Sales in five months, and was partly due to a decrease in all-cash sales.
Also of note, uncertainty from the heightened tensions in the Mideast helped Bonds regain some recent losses, as investors shifted their money into the safe haven of U.S. Bonds. Since home loan rates are tied to Mortgage Bonds, rates also benefitted.
The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.
Universal American Mortgage Company, LLC dba Pinnacle Mortgage Group – Company NMLS #1058. AZ Arizona Mortgage Banker License #0118366. CA Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act RMLA #4130443. CO Brian T Rindels, NMLS #10725, 303-716-9000, Supervised Lender License #987996, Regulated by the Division of Real Estate. NM Regulation and Licensing Department Mortgage Loan Company. OR Mortgage Lending License #ML-5079-41, 1761 Cowan, Suite 206, Irvine, CA 92614; Mortgage Lending License #ML-5079-40, 32605 Temecula Parkway, Suite 310, Temecula, CA 92592; Mortgage Lending License #ML-5079-42, 31351 Rancho Viejo Road, Suite 202 & 203, San Juan Capistrano, CA 92675; Mortgage Lending License #ML-5079-39, 3605 S. Teller Street, Lakewood CO 80235. TX Branch NMLS #172195, 1761 Cowan, Suite 206, Irvine, CA 92614; Branch NMLS #1173486, 32605 Temecula Parkway, Suite 310, Temecula, CA 92592; Branch NMLS #1173503, 3605 S. Teller Street, Lakewood CO 80235. WA Consumer Loan License #CL-1173503. NMLS consumer access verification. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify.