This week has been turbulent at best! During these times, we have to maintain perspective, staying positive! The S&P lost 12 percent on Monday but rebounded Tuesday, up 6 percent. Today futures were down more than 5 percent when they were halted. One word - turbulent. Also, you might just want to stop looking at your stock account,. just sayin'.
Interest rates have not dropped significantly with the drop of the Fed Rate. I discussed this at length on Sunday and nothing has changed yet except for small movements. Let's look at the bigger picture, the Director of the Cleveland Clinic was quoted as saying he expects this to turn in May. The GDP for 1st Quarter is expected to land at a net zero. 2nd Quarter will be negative given business closures and lack of consumer spending. However, 3rd Quarter is expected to be up 3 percent; 4th Quarter up 4 percent. Think about that for a moment. This is not a long standing economic shift but one that is expected to strike hot and fast.
On the demand side, we are supported by continued growth. Millennial birth rates 33 years ago is benefiting us with an estimated 8.8 to 9.2 Million first time home buyers.
As overwhelming as this feels; it's about maintaining perspective! And as a side note, take this time at home to practice making babies.. the world needs more buyers 33 years from now.
Stay tuned as I send out more regular updates. And give us a call if you want to know what this means to you! Our team is ready to not only keep you informed but get you the best rates.
Nicole Rueth The Rueth Team of Fairway Independent Mortgage Corporation 750 W Hampden Avenue, Suite 500 Englewood, CO 80110 303-214-6393 www.TheRuethTeam.com