I read a news article today that was sent from one of our preferred local lenders. The article talked about the state of the economy as compared to what it was in the late 70’s and early 80’s. As some of you may know, that time period was a tough time for the economy, after Jimmy Carter was finished with us. Anyway, here is what the article had to say.

“According to multiple third-party sources, prices continue to rise in many sectors of the economy and consumer confidence levels are at their lowest since the 1980s. The May Reuters/University of Michigan index of consumer confidence was at 59.5, but a comparison of statistics from previous years suggests that the current cycle really might not be that bad.

During the 1978-1982 market downturn the average 30-year fixed mortgage rate was 13.5%, according to Freddie Mac. Interest rates have been hovering around 6% for the first half of 2008 and the unemployment rate in May was 5.5%. In 1982 the average unemployment rate was 9.7%, according to the U.S. Department of Labor.

In a speech delivered in May by Federal Reserve Chairman Ben S. Bernanke, he said that there is no quick fix for the economy and that it will simply take time for the correction to occur. As the government works to jumpstart the market by sending economic stimulus payments to more than 130 million households, it’s up for debate whether consumers will save the rebate, spend it or pay down debt.

While consumer confidence remains low, spending continues to move ahead at a slow pace. And things are still turning around for the better. We have seen an increase in buyers coming through our office and stats from other local real estate offices show the same trends. So even though the economy is not what it was 3-4 years ago, it is just another cycle. The economy goes through these all the time and I believe it will go up sooner rather than later.

Stay positive and God bless.

This article was sent to me by Betty Krug and Becky Willey of Wells Fargo in Rehoboth Beach, Delaware.

Betty and Becky have been in the lending business for many years and can help you with all your home financing needs.

To contact Betty and Becky go to their website or call them at the office at 302-226-4072.