As natural disasters go, Hurricane Harvey has wreaked the most damage in terms of lives displaced and clean-up costs we have yet faced as a nation; the devastation will take years to cure.

While the human toll is unquestionably enormous, so too is the ripple effect on the local and national economy; Houston area is the 5th largest regional economy and accounts for 3% of US gross domestic product.

Some Immediate Impact Felt

  • National gas prices have risen due to refinery downtime. AAA estimates gas prices are up $.06 from the beginning of the week others put it at $.10.
  • Unemployment claims will rise steeply since sheltered people can’t work and flooded business in Houston and surrounds are shut down for the foreseeable future.
  • Auto sales slump in the short term. Up to half a million flooded cars and trucks will likely be scrapped; Texas is a key port to auto imports.

Recovery and Housing

  • More than 200,000 homes at an expected cost of up to $40 billion  could be flooded and need major repairs or replacement
  • According to the National Flood Insurance Agency only 15% of homes in the Houston area have flood insurance
  • On the positive side the economy will be put back to work quickly with recovery work

 

Now may be the best time to consider purchasing a new home or doing repairs and renovations with a 203(k) or HomeStyle renovation loan.   Please contact me at 302-438-9516 directly to discuss your dream plans now!

 

 

 

Related Articles

Fed vs. Recession Aug 23 2019

Home loan rates finished this past week essentially where they began, near 3-year lows. With all the chatter of a global recession and elevated fears that the U.S. will slip into a recession thanks to the recent inverted yield curve, why haven't rates improved further? Is the bond market telling…
Read More of the post Fed vs. Recession

The U.S. Bond market traded in a tight sideways range, leaving home loan rates essentially at unchanged levels week over week. However, the technical picture reveals Bond market indecision as prices trade near the best levels of the year. Why the indecision? The financial markets are bracing for a multitude…
Read More of the post Indecision Ahead of Huge News Week

This past week had little economic data for the financial markets to react to. As a result, home loan rates have inched higher though they remain near multi-year lows. It is normal to see quiet sideways trading action in the summer months, especially with the U.S./China trade war punting into…
Read More of the post Summer Sideways Trend Continues

This past week, Fed Chair Jerome Powell reaffirmed the Federal Reserve's dovish position as he testified on Capitol Hill, thereby paving the way for the first Fed rate cut in 10 years later this month. Mr. Powell used the word "uncertainties" five times in his prepared speech to describe potential…
Read More of the post A Slow News Week Ahead