Consumer Credit has Increased!
Consumer credit, both revolving and non-revolving, increased by $1.8 billion in January! In the 3 months previous to this, consumer credit had actually decreased by $19.8 billion! Clearly, banks have been restricting the amount of money they have been giving in fear of more potential loss. Though this news for January is positive, most economist do not believe it will continue. Consumers are continually worrying about what is going on with the economy and are decreasing their purchases of consumer products.
I do though believe strongly that we will see an upsurge in home purchases in the next 30-60 days as individuals will be looking for homes to get into this summer! The reason we will see many more home purchases is that the prices of home are an all time low. As well, the interest rates have never been lower. In most markets, you are seeing a price reduction of 50% or more!
What are your thoughts on this? Either leave your comments here or email me at psingh@rempower.com
I look forward to seeing you in a future workshop!
Prabhjit Singh