Current mortgage rates are responding favorably to a positive housing report today but remain under pressure as the markets consider the failure of leadership in Washington to reach a deal on the US debt ceiling and deficit. However, let me say at the outset that I still expect a deal to be reached prior to the August 2 deadline. I also understand the “sausage-making” process of creating legislation—perhaps better than most, as I served as a Lyndon Johnson Congressional Intern many years ago. Nevertheless, I am disgusted with this spectacle as I suspect most Americans (who are paying attention) are as well.
Three economic reports will be released today: the Case-Shiller Home Price Index, new home sales and consumer confidence. The markets, particularly the mortgage-backed securities (MBS) market, which determines mortgage rates for purchases and refinances, responded favorably to the Case-Shiller report indicating a slight but geographically broad increase in home prices. New home sales are also expected to be positive. Consumer confidence however is expected to show a decline.
The stock market today seems to have blocked out the noise of the debate and is focusing on positive earnings reports from Ford and UPS. Auto sales and package delivery are two indicators of an economy that is holding up under the pressure. American consumers and businesses appear tired of waiting and want to get back to a more normal environment with steady and sustainable growth.
Yesterday’s dueling press conferences were a display of much that is wrong with our current culture, but not a demonstration of what is wrong with our system. Our culture is permeated with the emphasis on divisions rather than common bonds. We are a people who have become obsessed with the belief that “the other guy” is the problem. We also believe that every encounter is grounds for an argument whether in a store, driving down the road or responding to a chat room post. Our society has become harsh, self-centered and absorbed, and in many ways the reflection of people who have lost the connection between hard work, sacrifice and success. If you have any doubts, one episode of any of dozens of reality shows will prove my point.
But our story doesn’t have to end this way—with a spiraling down into mediocrity. That is not the vision and experience of our nation. In our most difficult times we have always had leaders to step up—voices to call out to inspire, motivate and move us to action. We have always found leaders whose words have united us in a common purpose. Are you out there? We are listening. We are ready.