Mortgage Rate News

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It looks like the recession is over — at least technically. With Quarter 3 GDP numbers being reported today, it looks like the U.S. economy has moved from a period of loss into one of expansion. Economic data today was generally good, reports MarketWatch:

Along with improvements in key monthly figures on output and sales, the rise in real gross domestic product means the Great Recession is likely over in a technical sense, even as further job losses occur. A formal call on the end of the recession isn’t expected for months. …

“I anticipate that this is the turnaround, and that the numbers from here on out will be positive,” said Council of Economic Advisers Chairwoman Christina Romer in a televised interview.

Some are crediting economic stimulus measures for helping with the turnaround. It is important to note, though, that recovery is likely to be slow, and that for many individuals, a personal recession may continue for a while, since this economy is likely to see a “jobless recovery.”

Improving economy and buying a home

It also means that there is less of a chance of a double dip recession, or a return to another housing market dip. If this is the case, than it is quite likely that the housing bottom has already passed. If you have been waiting on buying  a home, it might be time to reconsider. It might be a good time to buy, while home prices are still low, mortgage rates are near record lows, and buyers have the upper hand.

In the end, an improving economy is likely to mean that some of the great opportunities and bargains that we are familiar with may not be available for much longer. It is true that the first time home buyer tax credit may be extended, but other than that, it is unlikely that all the great prices being seen right now will last.

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Just a couple of days ago, JP Morgan reported significant profits in the third quarter of 2009. This news was greeted with enthusiasm from investors, and sent the Dow above 10,000. The thought was that the financial system was improving, and that things were on the verge of improving. Yesterday, though, Citi announced that it is still struggling with bad debts and mortgages, and that put a damper on the party. Today, the stock market is in rout mode as Bank of America announces its third quarter was a rather dismal one. MarketWatch reports the bad news about Bank of America:

Bank of America said on Friday that it lost more than $2 billion in the third quarter as its provision for credit losses almost doubled, reflecting stressed consumers.

Bank of America said its net loss applicable to common shareholders was $2.24 billion, or 26 cents a share, in the third quarter, compared to a profit of $704 million, or 15 cents a share, a year ago.

The loss applicable to common shareholders includes preferred stock dividends of $1.24 billion in the latest quarter, compared to $704 million a year ago.

Before the accounting for preferred dividends, the company reported a loss of $1.00 billion in the third quarter, versus a $1.78 billion profit a year ago

It is clear that the financial sector may not really be ready to come roaring back. The news has sent the Dow back below 10,000 today as bears react to the sentiment. In the end, the financial sector is still trying to recover from the losses inflicted by the subprime mortgage market implosion and the financial crisis. These mortgage lenders are in tough shape, still. Even JP Morgan, which saw great profits, had to qualify its earnings report with the fact that non-performing assets are still on the balance sheet. Until the foreclosures stop, it is unlikely that the financial sector will be able to lead the economy to recovery.

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Every year, bloggers around the world unite with a single purpose, in an effort to raise awareness of an issue. The year, Blog Action Day is focusing on global climate change. When one things of climate change, one must also think about energy consumption. How we use our energy affects our world. Whether or not it is something that makes a huge difference in our weather patterns is up for debate in some circles. However, no matter how you feel about climate change, the way we use energy does have a very real effect on pollution, which should be a public health concern.

You can fight global climate change and pollution by making some changes to your home green home improvements can help you increase your energy efficiency, reduce your power bill and even get you a tax credit. The government is willing to provide you a tax credit when you make the following green home improvements:

• Windows
• Doors
• Roofing
• Insulation
• Water heaters
• Solar panels
• Fuel cells
• Wind energy systems
• Geothermal heat pumps
• Biomass stoves

You should be aware that the tax credits offered expire at different times, for different improvements, and that there are limitations on some of the green home improvements that you make. You can use a home equity loan or a line of credit to make the improvements and get a tax break on the interest you pay as well. Just make sure that you understand the cost, and that it might take several years for the green home improvements that you make to actually pay for themselves.

In some places, you can get state and local tax credits in addition to federal tax credits. Some banks and credit unions will also offer you a lower interest rate on a home equity loan if you are using it to make green home improvements. Before you begin, make sure you have looked into all available programs, and that you are getting the maximum help you can.