Optimism about the Economy

While snowed in over the holidays I had a lot of time to think and read about the economy, and I have reason to be optimistic! Not only are gas prices falling, which helps everybody in the short run, mortgage rates are also averaging very low, about 5.19%, and may go even lower. The Treasury Department might push rates even lower, for refinancing as well as new home buyers. The Federal Reserve is taking action, and with the Obama administration planning on making drastic moves as soon as he is inaugurated in January, the beginning of 2009 should see the first steps to economic recovery. Some key indicators of economic recovery will occur in real estate. Things to look out for are the bottom of the housing market, loosening of lending standards, and an increase in applications for building permits. All of us can do our part by being frugal, making wise investments, such as in real estate, and not getting too worked up by the fear mongering that can go on in the national media.