AgentIndustry News

An economy on life support

Commentary: No time for 'tap dancing' around banking problems

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

Another week of odd calm ... at its heart a void of information from government. The economy is on life support, but the intentions of the physicians are unclear. In the data details, nothing new. Mortgage rates still rattle in a very narrow, high-four range, held so low only by the Fed's massive buying. The stock market has shown some buoyancy, holding its ranges: Dow 8,000 and S&P 850. That optimistic trading is based on hopes that the economy will follow prior cycles: New weekly claims for unemployment insurance may have hit cycle-top at 665,000 in early April, and history says recessions end two months after that top. Historically, we're overdue for an inventory pop -- new orders to replenish excessively depleted pipelines. Historically, we should soon begin to feel the stimulus spending. Stocks reacted well to news of a slight decline in March sales of new and existing homes, and apparent drops in unsold inventories. However, there is still no increase in applicati...