One of my regular guest contributors, Troy Toureau of McLean Mortgage makes some interesting points as the debt limit deadline approaches. Here were hear about how real estate is recovering- Yeeeeha and what many economists and analysts have been telling us for a while… To buy real estate is a good thing do to in the Northern Virginia Market. Check out what Troy has to say about the debt limit deadline as it pertains to real estate, nationally and locally.- Genevieve
Debt Limit Deadline Approaches
For several years we have been recovering from a financial disaster. The bad news is that the recovery has been so weak that many have felt we were not recovering. The good news is that the recovery has continued slowly but surely. During the way we have had several speed bumps thrown in our way. Some of these were not avoidable — such as tsunamis and super storms. Others were man-made such as the threat of a government shutdown or a fiscal cliff. Today, many are more optimistic about what is on the horizon.
The most important sector of the economy — real estate — is recovering. The fact that interest rates have risen over the past year is not a symptom of weakness, but a symptom of a stronger recovery and many analysts are optimistic that the soon-to-be-released advanced reading of the economy for the last quarter will continue this evidence.
Despite the optimism, there is still the possibility of man-made roadblocks. For example, early next month Congress must vote on the extension of the debt ceiling. The good news is that before the end of last year, we actually had a bi-partisan agreement to keep the government open. This gives us optimism that Congress might again resolve a potentially sticky issue.
We do know historically that this Congress will act at the last second (or afterwards) and there will be a lot of saber rattling. In the past when deadlines approached,
the media coverage affected consumer confidence. At this point, it may be that confidence will not be affected as much by these negotiations because we have become anesthetized by it all. We are just used to it at this point.
Early next month we have a jobs report and a Congressional issue. Let’s hope neither puts another speed bump in the way of our continuing recovery. On the other hand, we don’t want the Federal Reserve Board thinking that things are going too well when they meet this week so that the y become inclined to make an announcement that will reverse the recent trend towards lower rates.
NMLS ID: 5618
11325 Random Hills Road,
Fairfax, VA 22030