With the 2008 financial crisis still fresh in our minds, looming decline within our economy has triggered concern.
One major red flag that is being perceived is in regard to housing. Rates for purchasing homes are steadily increasing, while it is less stringent to acquire home loans. This exact scenario was one of the major contributing factors in the last depression that we encountered. The current average interest rate for homebuyers is 5.06 percent, a .65 percent increase from September of this year.
Concerns over current stimulus with the tax cuts causing the economy to overheat are rising in cohorts uncertainties about inflation.
The US economy grew at a 3.5 percent in the third quarter due to the government and US consumers. Investment spending is not increasing according to recent reports. This rapid growth is feared to drop in upcoming months even with the holiday season upon us.
The federal reserve is slowly raising interest rates. This increase in rates usually does create a spending decline in both business practice as well as consumerism.
Global economy is slowing in both Asia and Europe as well. This is creating a fearful pattern that could generate a great fall in which we would see significant financial impacts from in 2020. These impacts could in turn, effect employment as well as consumer and business spending.