Keeping you updated on the market!
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It hasn't officially been declared over, but it's becoming apparent the economy has emerged from its longest recession in decades. A string of stronger-than-expected data releases has prompted many economists to boost their fourth-quarter forecasts, with most estimates calling for annual economic growth in the 3.5% to 4.5% range. Sales of existing homes were among those stronger-than-expected data releases. Purchases increased 7.4% to a 6.54 million annual rate, in November, exceeding the upper range of nearly all estimates. It's a remarkable recovery from January 2009, when sales were running at an annual clip of 4.5 million. What's more, strong sales have dropped inventory to a 6.5-month supply while stabilizing prices, positioning the housing market to better absorb the foreclosure overhang that some pundits believe will threaten the market next year. Then again, the foreclosure overhang might not be as threatening as the pundits are suggesting. The unemployment rate has dropped to 10%, helping, not surprisingly, to increase income. On that front, Americans made the largest income gain in six months during November, with personal income increasing 4% over October. More income translates into a greater ability to service a mortgage. |
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