SUMMER RECAP! 

It has been an exciting and confusing summer for most people in regards to the markets, real estate, economy, gas prices you name it! A few facts:

Markets*:

• Yes, the DJIA (Dow Jones) is down 6.8% since Memorial Day, hitting its 52 week low July 15th.

• S & P 500 down 6.1% and NASDAQ down 1.2%

• The 10-Year Treasury yield has hit close to its lowest levels this quarter, hopefully inching the 30 year   fixed rate gradually lower.

• Fannie Mae and Freddie Mac stock dipped to lowest levels (FRE $2.26, FNM $3.53). Posting $14.9B combined losses over the last 3 quarters.

• Oil has traded as high as $147/barrel and as low as $67/barrel, all in the last 52 weeks!

No wonder we are confused as consumers, the volatility and instability in the markets directly affect our perception of everyday life. The most obvious:  gas prices, groceries, and 401K's declining. What is the average consumer supposed to do? Conservatism is definitely the common thread - savings plans, diligent spending, traditional mortgages, fuel efficient automobiles etc...

Despite the gloom and doom that seems to pervade in media reports, we still have good news! In July Existing Home Sales rose 3.1%, to 5.0M units. The national median home price has declined 7.1% the last year, increasing the affordability for buyers. People still need homes, still have money for down payments, and still (now more than ever) hold a responsible view towards real estate. Home prices continue to drop and interest rates are historically low, thus allowing people to afford larger homes, grab better deals, and ensure solid financing!