Star Financial Economic Forum – Part III

As a result of all of the analysis Dr Seifried presented at this year’s Star Financial Economic Forum, he predicted that mortgage rates may even go lower in the next year. His prediction was that 30 year mortgages could drop to 3%.

Part of the problem facing the U. S. economy is a natural result of the aging of our population. Households from 40-49 years of age tend to  accumulate wealth and those from age 60-69 tend begin to consume their wealth. In fact, if driven completely on this factor alone the stock market would be expected to drop 13% per year.

The 2007-2009 recession has been deemed a “balance sheet” recession because people and companies have been getting their balance sheets in order. The good news is this will position us for a much more robust recovery when it arrives. Current projections are that GDP will be 2.5 to 2.9 and unemployment will be 8.1% in 2012.

Dr Seified discussed the impact of oil on the economy, pointing out that when oil is over $140 per barrel it kills the economy and under $75 per barrel it revs it up. In fact, for every 1% raise in oil prices, GDP drops .5%!

Housing has lead the U. S. into every previous economic recovery. Housing is traditionally 5% of GDP, yet it is currently only 2.2%. If population grows 1%, then housing prices follow with a 1% increase. Economists are looking for housing starts to return to 1 million units and restore economic growth.

As you evaluate your housing needs, North Eastern Group Realty agents are prepared to assist with your significant Fort Wayne real estate decisions. Our corporate commitment is to provide real knowledge, proven experience and professional, quality service. To search all Fort Wayne homes for sale visit our website at NorthEasternGroup.com.

North Eastern Group Realty is Fort Wayne’s largest independent real estate company located at 10808 La Cabreah Lane, Fort Wayne, IN 46845.