US New Home Starts Fall Dramatically
Well, the analysts are lining up on the side of a slow down in the housing market. According to the latest economic data, housing starts in August were down to levels not seen since April of 2003, reinforcing the idea that the market is cooling.
The economy is not far behind.
The goods news is that the Fed is staying pat on interest rates, and it looks as if we could see the overnight interest rate remain at 5.25 percent for at least the foreseeable future. This should help stop the soaring costs of mortgages, and give anyone with an ARM some breathing room.
For anyone interested in refinancing, if you can wait -- you should. Rates are predicted by many to drop in the coming year. Already there is pressure on long term mortgages, and interest rates for 30 year mortgages are down from. 25 to .5 percent since the beginning of the year.
More good news: the net wealth of US households rose in the second quarter of this year. Household debt grew in the same time period at the slowest rate since 2002.
So, while the economy may be slowing, here's hoping that the fall will be soft.