Why is there talk of a Double Dip Recession

There is some talk about how we may be headed into a double-dip recession and the job market will lose more jobs.  We shall see.  If so, we could see rates drop!

Guess what?  It looks like this is more and more likely to be true. Did you hear the news TODAY (8-24-10) about Existing Home Sales off 27.2%?

According to Yahoo Finance, Existing-home sales, which are completed transactions that include single-family, townhomes, condos and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.

Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales - accounting for the bulk of transactions - are at the lowest level since May of 1995.

The definition of a Recession is two negative quarters of GDP (Gross Domestic Product).  So, for us to have a Double Dip Recession we need to see 2 straight negative quarters of GDP. 

The funny thing is, is that the people who are saying Double Dip Recession, probably don't even know this - just saying!

Watch the Unemployment Report closely these next few months (it comes out the 1^st Friday of every month).  When we see the economy starting to lose jobs, trust me, Interest Rates are coming down.  When you see the Economy starting to gain jobs, trust me, Interest Rates are going back up.

Where's all the talk about Deflation now?

You CAN NOT have Inflation without wages going up & housing prices going up.   Well, with the Existing Home Sales news TODAY, that doesn't look very possible now does it?  When home sales are down, what happens to housing prices?  So, can we finally get rid of this Deflation talk FOR A WHILE?

If you are refinancing or purchasing TODAY, please DO NOT pay closing costs, because if & when rates do come down some more, we can refinance you AGAIN for ZERO Cost.

There are new laws and guidelines when refinancing.  Every loan officer, real estate agent and homeowner needs to be aware of what a Good Faith Estimate is and how it is designed to protect you, the client!

Solomon Financial Mortgage, pays for escrow, title, appraisal ... all the costs that go into the cost of refinancing, we pay them for you and show you how and why this can be your BEST option when PURCHASING or REFINANCING. 

"Watch, listen and learn: True No Cost Loan Video" -http://freemoneyhour.com/wll.php 

  Frederick Solomon, Jr. and Solomon Financial Mortgage Team

Real Estate and Mortgage Division
Real Estate Education & Financial Coaching
(949) 222-0240 begin_of_the_skype_highlighting              (949) 222-0240      end_of_the_skype_highlighting, ext 221  /  Cell:  (714) 403-7334
 "Watch, listen and learn: True No Cost Loan Video

Click here for 2010 Good Faith Estimate Explanation