- Existing Home Sales rose in May to reach the highest rate since November 2009. Housing Starts also rose by 7 percent in May to come in a whopping 28 percent higher than May 2012.
- In other housing news, RealtyTrac reported that foreclosures rose by 2 percent in May from April. But the good news is that foreclosures have fallen 28 percent from where they were just one year ago.
- The economy as a whole also received some good news last month. Standard & Poor's, one of the big three credit-rating agencies, raised the credit outlook for the U.S. from negative to stable. The manufacturing sector also received a boost of good news, as both the Philadelphia Fed Index and the New York State Empire Manufacturing Index came in well above expectations. And, consumers felt confident enough to open their wallets in May, as Retail Sales rose at the fastest pace in three months, led by demand for groceries, autos and building materials.
- Although inflation at the wholesale level rose unexpectedly in May, inflation at the consumer level remains tame and overall inflation pressures remain muted, which should help keep Bonds and Lake of the Ozarks Home Loan rates at attractive levels.
- Another factor that has helped Bonds and home loan rates remain attractive is the Fed's Bond purchase program (known as Quantitative Easing). Fed Chairman Ben Bernanke did say the Fed may begin tapering the program later this year and to finish by mid-2014. So this will be an important story to keep an eye on as economic news comes in over the next several weeks and months.
The bottom line is that home loan rates remain attractive 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 someone you know.
