The Dow slid for the week, closing at 13437.13 on Friday, due to European problems and the price of gasoline. Americans boosted spending in August, with most of the increase being spent on gasoline. The Commerce reported a 5 percent increase in spending among consumers in August from July. It was the biggest increase since February. Keep in mind that gasoline prices rose nearly 50 cents per gallon in July and August, but have dropped in price recently. U.S. oil production is at its highest level in 15 years, actually higher production than back in January 1997.
A new survey of consumer confidence rose to a seven-month high last Tuesday on expectations that hiring will increase soon. Proof-in-point is that Toys R Us plans on holiday hiring in the amount of 45,000 jobs. Other retailers are sure to follow. One current increase in spending will be for Halloween, as more people than ever are expected to spend on costumes, trick-or-treating parties, etc.
Real Estate, Mortgage Industry, and Other Economic News
The USDA has postponed their re-mapping quest until March 2013. I guess Congress didn’t want to make any changes to the Rural Community Home Loan program provided by USDA until after the elections are over with and the “New” Congress has had a better chance to hear form their constituents. That means you-if you want to keep Boerne and Kerrville on the approved USDA list. Both of these cities had been included to have been taken off due to 2010 Census numbers.
Mortgage rates hit yet another all-time low: 3.40% for the 30-year fixed rate index and 2.64% for the 15-year fixed rate index. Remember, these rates usually include 1 origination fee and/or 1 discount point. Are these rates too cheap or what? Do you know what closing costs are? Escrows? If not, don’t take a chance on a faceless encounter of the “dumb kind” by going through an internet provider. Find a Local Mortgage Loan Officer and Realtor and let them be your guide to what is still the largest purchase most of us will make in a lifetime.
(This article is for informational purposes only. Do not use it as financial advice. Information gathered for this article attained from, but not limited to, The Wall Street Journal, S.A. Business Journal, S.A. Express News, Boerne’s Hill Country Weekly. For questions/comments contact Tony Stevenson at 1.800.460.6990 or email:email@example.com.)