Thursday, June 25, 2015
The U.S. economy had a rough first quarter of 2015, but it's looking a little better after revised numbers came out this week. The economy shrank by about 0.2 percent from January through March of this year, much less than previously thought. The good news is that analysts are placing blame on harsh weather and a temporary West Coast trade dispute rather than more insidious long-term problems.
Since March, payroll numbers have also picked up along with wage growth - a huge indicator sought by economic officials to mark a fully complete recovery. Federal Reserve chairwoman Janet Yellen calls the wage growth "tentative" at the moment, but it's a positive sign nonetheless of real economic growth.
In addition, new home sales have risen to a seven-year high nationwide in May, showing how robust the housing market has become. The overall market is tight with existing home sales also doing very well. (In the Denver area in particular, anyone who has put a home on the market or attempted to buy knows homes in the metro area are selling extremely well, usually exceeding asking price.)
With most signs pointing toward economic improvement, many pundits are speculating when the Fed will start to raise central interest rates. Chief Yellen has stated that an inflation rate of around 2 percent is targeted before rates will really move upward. In anticipation of this coming change, mortgage interest rates have crept up slightly - but along with that, so have mortgage applications because rates are still lower than they were a year ago.
If you want to take advantage of today's very reasonable rates or get more information on market trends, call a Vertex loan officer toll-free at 877-939-0339.