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

“We are good where we stand right now.” (Fed President James Bullard — January 10, 2019) Stocks continued to react positively to Fed Chair Powell’s Jan 4th speech, where he essentially said, “we have your back” — meaning that the Fed will be “flexible” and may not raise rates at…
Read More of the post Opposing Forces Keep Rates Steady

“Workin’ for a Livin’.” (Huey Lewis and the News) iPhone maker Apple, was a downer this week as the company announced a surprise weak sales and earnings forecast for the first quarter of 2019. Stocks and interest rates fell on the bad news, concerned that Apple, the first big tech…
Read More of the post Good News for the Start of the New Year

It was all about the Fed this past week. On Wednesday, they hiked the Fed Funds Rate by 25 basis points (0.25 percent). That rate affects short-term loans like auto and credit cards — what it doesn't affect are home loan rates. Home loan rates actually improved to the best…
Read More of the post The Santa Claus Rally