Economists who track the number of new mortgage applications nationwide over a particular period feel that this number can be indicative of the overall economy. If that is true, things are looking up! CNN Money reported that last week was the busiest for new mortgage applications since 2008, according to the Mortgage Bankers Association!!
Housing, whether sales of existing homes, new construction, or refinances, historically has a huge impact on spending and economic growth, so this is great news. With mortgage interest rates at the lowest point in over 18 months, many of the new applications are refinances. Not everyone jumped on that bandwagon last time rates dipped, so this is a welcome opportunity. Refinances can result in more capital being invested elsewhere, either by equity being tapped or by monthly expenses being lowered for wage earners, giving them more disposable income for spending or investing.
Another benefit of a strong housing market is job growth. Whether service or manufacturing, many businesses grow when homes are selling. 2015 may be a banner year for the United States economy, with low inflation, a strong U.S. dollar, a housing market that appears to be on the rebound, and job growth. Find out where you fit in that picture and don’t miss the benefits of a strengthening economy!