Mortgage Blog

When bad news is not bad

October 26th, 2012 10:13 AM by Eric Fang

The US economy has almost lost 10 years.
At least the stock market is about 10 year ago
level and the real estate house price is about the
same level as 2012.

But when we have the GDP of 2%, the media seems
happy about it. Just because it's better than
1.8% as expected? People is alos happy about the
unemployment rate, just because it's lower than 8%?

GDP hrowth of 2% is nothing. I believe the inflation
rate is over 2%. So there is no growth at all. And in order
to bring the US economy back to recovery we should see
the GDP growth of 4.5% or more.

With so many companies have "disappointed" earnings,
we will have another tough year for the us economy.
And it was projected that the 2nd half of 2013 will be
better, and we heard every year for the past 4 years.

One news from MBA(Mortgage Banker Association, not the
degree), the loan origination volume will see steadily
growth in 2013 & 2014. For 1st half of 2013, the volume
is from the refinance; for 2nd half of 2013 & 2014,
the volume is from the purchase. And one thing is "certain",
the rate will go up 2nd half of next year.

Hope MBA is right this time.

Posted in:General
Posted by Eric Fang on October 26th, 2012 10:13 AM



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