Yesterday you read how the U.S. Purchasing Manager’s Index hit a 4-year high for the month of July. This followed on the heals that the suspect Q2 GDP number of 4.00% was off kilter a bit but the number was indeed confirmed this week with the Q2 revised numbers and actually increased by 4.2%.housing coming on strong for investors

Today, the Commerce Department reported that U.S. factory orders logged in with a 10.5% increase in factory orders, primarily a benefit from transportation orders. The Dow finished up slightly at 17078.28 while the S&P held above 2000 once again, albeit barely. So what’s to come of these numbers and when with will the markets begin to think we’re indeed in a recovery?

That’s a good question but one that many have already answered. It’s a simple case of the jitters, to put it mildly while others are downright nervous. Nervous investors buy bonds and wait or otherwise place their assets in cash and should continue to do so until world events calm down. Real estate investors however aren’t as concerned.

Housing starts surged in August to an 8-month high, this according to the National Association of Home Builders while building permits also notched an 8.1% bounce. Existing homes for July were up 2.4% in July and pendings, contracts on existing homes not yet closed, were up 3.3%. There is continued demand for housing and mortgage rates have been accommodating as well. The well qualified investor is enjoying the best of both worlds now with increases in equity and mortgage rates around 4.50% and 3.875% for the respective 30 and 15 year fixed rate loans for investors.