In an interview with CNBC this morning, Nouriel Roubini, a leading Global Economist, speculated that today's job numbers, though dismal - could be setting us up for a U shaped recovery.
This is interesting, as others on CNBC this morning, also speculated that we've hit the bottom, and are due for a bounce upwards.
In fact, according to the Bureau of Labor Statistics:
"Although job losses continued in many of the major industry sectors in August, the declines have moderated in recent months."
What this means for the Immediate Housing Market: Fortunately, or Unfortunately, housing has ALWAYS been tied to jobs. In areas where people have jobs, and the unemployment rate is realatively low - people will continue to purchase homes. In areas where people are afraid of losing jobs, well, those first time homebuyer incentives probably won't help.
What this means for Mortgage Interest Rates in the Near Future: Again, Fortunately or Unfortunately, mortgage interest rates have ALWAYS been a little sadistic during times like this. I tell customers to think about it this way... At a Hospital, Business is Good = Everybody's Sick. In mortgage lending, Bad News in the Economy means Good News for Mortgage Interest rates.
The question becomes, how long will it last. The Government announced in whispers in June that they were NOT going to purchase as many Mortgage Backed Securities (MBS) as they earlier claimed they would, and in fact that the program would likely END in September.
If the Government stops purchasing MBS, we could see rates spike quickly... and after reading this, I'll bet there's pressure for them to stop the program.
Call Steve and Eleanor Thorne, Meridian Residential we have the Lowest Rates (right now they are CHEAP!)! 919-649-5058