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Julie Duncan's Blog

By Julie Duncan | Broker in Lexington, MA

Economic Outlook Promising,says Freddie Mac

Money Matters     I attended a very informative presentation by Calvin Schnure, Freddie Mac Director of Economic Analysis. He presented many charts and supporting documentation that I believe a Greater Boston Real Estate Board member can access on-line, but the net net was that we are in a good position to see a brighter 2011 & 2012.

By early next year he believes the "payback" for the tax credit [sales that would have happened anyway] will be ending. August Sales were better than expected. His main justification was that Consumer Debt Ratios are at a 12 year low. I guess we've learned how to cut back and pay off. Of course the bank's writing off consumer credit didn't hurt!

Affordability is less a problem, rates have to go up - can't go much lower - but Calvin Schnure felt the wouldn't go up fast or by much - maybe 5.50% by end of 2011. An improving household balance sheet, plus a more positive psychology of the consumer make now a "good time to buy".

I highly recommend attending a presentation by Calvin Schnure. He's a great speaker and make economic trends and jargon easy to grasp.

This link will give you a taste of his analyses.

http://www.freddiemac.com/news/finance/docs/Oct_2010_public_outlook.pdf

Keep Smiling!

CRS, ABR, Realtor  

                                                                                                        

Duncan Team

Lexington, MA

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