Should we be singing “Happy Days Are Here Again?” or is it too soon to break out the champagne and noisemakers?
The media has been aflutter with positive economic news, but will the momentum keep going? No one really can say for sure, but one can make an educated guess based on the realities of today’s economic news.
On June 25, 2013 a University of Florida survey reported those living in the Sunshine State were feeling pretty good about the economy with consumer confidence up another point in May to another post-recession high.
“The last time perception of current buying conditions reached this level was April of 2007,” eight months before the Great Recession officially started, said Chris McCarty, the director of UF’s Survey Research Center in the Bureau of Economic and Business Research.
The survey takes a long look at how Floridians’ feel about their own finances, economic conditions, in the coming year. A long-term view of the nation’s economic health and whether now is a good time to buy big ticket items, like a home.
One of the bigger concerns amongst Floridians, notes McCarthy, is that interest rates will go up being as that the Federal Gov’t has said it might pull back on the amount of Treasury bonds and mortgage-backed securities it has been buying to fuel the economic engines.
In addition to higher mortgage rates, higher home prices are being seen across South Florida. The Standard & Poor’s/Case-Shiller home price index for Palm Beach, Broward and Miami-Dade counties grew 13 percent in April from the same time a year ago. So, despite higher interest rates, people are still dipping their toes into the housing market.