One of my favorite economists is Brian Wesbury with First Trust and he is still very bullish on our economy. Why? First, corporate profits are still increasing. Second, the M2 money supply is growing at an annualized pace of 9.2%. Third, the Fed has cut short-term interest rates and appears to have no interest in raising them. Fourth, our new trade deal with Canada and Mexico will soon be passed by Congress he believes. Fifth, a beginning new trade deal with China may be signed soon. Sixth, "the ball and chain of regulation continues to ease around the ankles of entrepreneurs."
What does this mean for us? Housing demand should remain very strong in 2020. However, mortgage rates may rise a little bit in 2020 as the fears of recession have lessened.
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