Your Lake of the Ozarks Mortgage Lender: U.S. Economy Rolls into 2015 with Favorable Numbers

Friday, January 9, 2015

U.S. Economy Rolls into 2015 with Favorable Numbers

The U.S. economy is starting the year off with great numbers from almost every sector! As your Lake of the Ozarks mortgage lender, I strive to keep you up to date on industry news! Take a look at these numbers and let me know if there's anything I can help you with in regards to your Lake of the Ozarks mortgage this year.

Gross Domestic Product Soars

The third quarter of 2014 ended on a high note, as the final reading for Gross Domestic Product (GDP) soared to 5 percent, led by stronger consumer and business spending. The 5 percent reading was the fastest pace for economic growth in the United States since the third quarter of 2003. GDP is the value of the production of goods and services in the U.S., adjusted for price changes, and it is considered the broadest measure of economic activity. The strong reading is a good sign for our economy heading into 2015.

Housing Sector

After a strong fall quarter, the housing sector began to slow approaching the New Year. November Housing Starts fell by 1.6 percent from October, and single-family residential starts fell 5.4 percent, while the volatile multi-family (apartments and condominiums) segment rose. Building Permits, as well as New and Existing Home Sales also fell in November.

Jobs Sector

Despite these decreases, the housing sector has been improving overall, primarily due to wage and job growth. A strong December Jobs Report also raised hopes of kicking off 2015 with a bang. The Labor Department reported employers added 321,000 jobs in November, the highest since January 2012. Unemployment stood unchanged from October at 5.8 percent, but lower from the 7 percent reading posted a year ago. The Wall Street Journal also reported that wage growth is accelerating.

Taken together these are good signs for economic growth in 2015, which should help the housing sector reclaim a positive trend.

Consumer Price Index

Something to watch as we jump into a new year, is the Consumer Price Index. Inflation can have a big impact on the Bond markets, and also on Lake of the Ozarks home loan rates, which are tied to Mortgage Bonds. The Consumer Price Index (CPI) measures monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Plunging prices at the gas pumps led consumer prices lower in November. The CPI fell by 0.3?, versus the -0.1% expected, as the inflation reading gauge posted its largest monthly decline in 6 years. The bottom line is that inflation is known as the archenemy of Bonds and home loan rates. Inflation reduces the value of fixed investments like Bonds. This means that low inflation often comes hand in hand with low home loan rates. Keep in mind that when inflation begins to creep into our economy, it can create rapid changes in the interest rate climate.

When it comes to your Lake of the Ozarks financing needs, I'm committed to working with you every step of the way. I'll discuss financing options, offer competitive interest rates and back it up with the first-class service you deserve and I guarantee!

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