Mixed results in latest economic research
Posted on Friday, July 29, 2016 at 1:30:55 PM
Several factors have contributed to the historic low mortgage rates seen across the nation, as well as the strong approval percentages on applications for residential financing programs. This includes positive catalysts such as a revitalized economy and higher home values, as well as less-than-savory, international factors such as the United Kingdom's decision to exit the European Union. Right now is still a great time to apply for a mortgage, but some economists are not so sure about how this will all play out past the end of 2016.
Much like any type of investment in the modern era, timing is everything. Refinancing and new residential loan programs are in a solid position today, and any homeowner who has been considering applying for these products should certainly act soon, as it is difficult to predict how long this current trend will remain with respect to rates, standards and approvals.
Bankrate recently broke down two reports - one from the U.S. Department of Commerce and the other from the National Association of Realtors - on second quarter growth across the American economy. According to the news provider, the Department of Commerce's data indicated that gross domestic product expanded at an annual rate of 1.2 percent in the second quarter of this year, very far below the expected 2.6 percent rise so many had forecasted going into the third quarter of 2016.
Citing the comments of National Association of Realtors chief economist Lawrence Yun, the source pointed out that the economy might not be in the clear quite yet, rather only skimping along. Yun also told Bankrate that the residential investment level dropped 6.1 percent, but that it is important to remember the first quarter's positive performances when looking at this finding.
"Going forward, GDP should avoid recession for the simple reason that more new homes need to be constructed," Yun affirmed, according to Bankrate. "America is experiencing a housing shortage crisis. More homes need to be built and that in turn will lead to faster economic growth."
Get the right program
Thanks to the positive gains seen in 2014 and 2015, the diversity of programs available to home buyers and those looking to refinance their mortgages is as healthy as it is vast. Consider working with a local bank to evaluate all of the options on the table and land on the best one with respect to unique needs and goals.