La Jolla Real Estate, Del Mar real estate, Rancho Santa Fe Homes, Carmel Valley Real Estate, University City and
Downtown San Diego real estate, homes and condos for sale in California - Ruth Mills & the Mills Team, REALTOR.






Search the San Diego MLS
(includes all areas in San Diego County)



 February 22, 2009

The Two Sided Economic Coin!
Most coins we see have both a heads and a tails and without looking carefully we only can view one side at a time. The economy is similar in some ways. The politicians would have us believe things are ALL GOOD News or ALL BAD News depending on the view (side of the coin) they would like us to see. And like most things political nothing is all good or all bad!
The loss of 85,000 jobs in the last jobs report is certainly not a sign of a healthy economy and might be considered bad news by those counting jobs, and especially to the families affected by a job loss. For those looking for a mortgage or new loan the news is that rates are down to all time lows, which might be the good news on the other side of the Jobs coin. For a 30 year fixed rate "conforming", "conventional" loan the average rate fell to just below 5% in the last report. By those looking to take advantage of the $8,000 tax credit, this may be the good side of the economic coin.

The connection to these two sides of the coin is; if the unemployment rate stays high the FED does not see the economy into recovery and therefore does not want to slow the economy by raising the interest rates it charges banks for the money it lends to them. This will generally keep mortgage rates lower. For example if you are looking for a home in San Diego County, the payments right now are lower, because interest rates are low; and San Diego home prices are low. As a result more of a home can be purchased for the same monthly payment. That same amount would have paid for a lesser home when the employment rate was looking better, but the interest rate was higher.

If that makes logical sense them the flip side is that as the economy improves, and employment numbers improve, (and they tell us that is going to happen soon), the FED will raise its rates and the cost of a mortgage in San Diego Real estate will go up and we will be able to purchase less house in the future for the same monthly payment. Flip side of the economic coin!?

San Diego, Del Mar, La Jolla, UTC or for that matter the National home buyers need to be able to view both sides of the economic coin in order make a good decisions and take advantage of any economic situation. Your CPA, Realtor and Lender should be able to help you get several views of the current Market conditions and from different views. The Mills Team is always here to be your real estate information resources.