The recovery is moving faster than earlier believed!!

The recovery is moving faster than earlier believed!!

The economy continues to show signs of slow but steady mending.  Housing continues to grow, interest rates remain very low, and inflation is virtually non-existent.  I can end this week’s report with the one previous sentence because it appears that a good portion of our nation could care less.  Almost everyone is focused on these two most important news headlines…

1. Lance Armstrong admits to Oprah that he used performance enhancing drugs.
2. Finding out if Manti Te'o’s knew he was in love with a non-existent person.

It is a sad state of affairs in this country to see the amount of time and energy spent in a single week on the discussion of these two events.  The media and the American people probably spent more time and focus on these two reports than congress spent in total trying to solve the fiscal cliff. 

For starters…millions of American’s found out for the first time that they actually “do” have Oprah Winfrey’s OWN channel on their cable or satellite system.  The amount of people that tuned into the first broadcast of the two part series on Thursday evening is staggering. (I personally did not watch one second of the program because I know how it ends…Lance did drugs!)

Next we have the non-existent girlfriend of Manti Te’o.  Everyone is quick to pass judgment on this young man without knowing the facts.  Once again, my life has not been, and will not be impacted whether his girlfriend existed or not, and quite frankly I don’t care.  What does amaze me though is just how many people actually do care.  (Maybe something is wrong with me).  By the way I know how this story ends also…His girlfriend wasn’t real.

I do know one thing however…there are millions of men and woman in this country that are in relationships today that sometimes wish their significant other didn’t exist.  (Sorry just couldn’t resist)

In regard to economic news that might actually have an impact on your life or business, here is the short version:

• Inflation continues to remain very much under control on the wholesale level.  Consumer prices on the other hand are rising a little more than expected.  According to the Commerce Department, consumer spending was moderately strong in December which posted a 0.3 percent rise, following a 0.1 percent dip in November.
• Mortgage bankers are very busy so far this year as demonstrated by the 15.2 percent jump in applications last week following the 11.7 percent jump in the prior week.
• Housing is still recovering and at moderate pace but the activity in December indicates that the recovery is moving somewhat faster than earlier believed.  Housing starts in December jumped 12.1 percent following a decline of 4.3 percent the month before. The most telling figure is that starts are up 36.9 percent from a year ago.

JJ Mack
916-517-1800
JJ.Mack@apmortgage.com
www.apmcroseville.com