Warning of a slowing economy.
In the past 4
weeks we have seen weak jobs reports. Interest rates in Europe are near zero on
their long term bonds (our 10 year bonds are about 2%). China has posted
concerns in their growth and real estate market as well. We are all in a global
economy and the US has been the shining star for the last 2-3 years.
But this
week, U.S. stocks ended lower on Wednesday as the Federal Reserve cited
weakness in the U.S. economy and data showed U.S. growth slowed more sharply
than expected in the first quarter.
But the Fed's
acknowledgement of weakness in some sectors of the economy makes it more likely
it will not be ready to raise the short term rate until at least September,
which kept stocks from falling further.
"We all
know the Fed would love to start normalizing rates, but the simple fact is, the
data does not warrant that action right now," said Wayne Kaufman, chief
market analyst at Phoenix Financial Services in New York.
So the KEY
point to get from this latest information:
·
Interest rates are likely to stay in the range we have seen this year
(3.75-4.25%) until at least the fall. That is good news for the busy summer
real estate season.
·
The US Economy is weaker, but relative to the others in the global arena
we are STILL the shining star
·
The Federal Reserve wants to raise interest rates, but will not do so at
the expense of the overall economy.
Home Tip of the Week.
Plant your own
modern victory garden.
I have a 5 year
old so this is about getting our own delicious carrots, snap peas and tomatoes.
But it is a great way to help your home’s value as well. A gardening spot, is a
big plus in the landscaping for homes today.
Here are a couple
of links to how to build planter boxes and starting your own back yard garden.
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