Come now, don't be a doubting Thomas all your life! Could it be true? Is it possible that the economy is improving? Is anyone out there willing to listen to the positive?

Here you go a few positives:

According to an article today in CNNMoney:Gasoline prices fell Sunday for the 38th straight day, bringing down the nationwide average in a motorist group survey by more than 42 cents overall. The price of regular unleaded gasoline at the pump fell 1 cent to $3.688 a gallon, according to the Daily Fuel Gauge Report from motorist advocacy group AAA and the Oil Price Information Service. The average is based on credit card swipes at 100,000 service stations. Prices have fallen 10.4% since hitting a record high of $4.114 a gallon on July 17. The dip comes after U.S. crude for October delivery saw the largest drop in 17 years, closing down $6.59 to settle at $114.59 a barrel on the New York Mercantile Exchange.

CNN money August 22, 2008: 3:18 PM EDT NEW YORK (CNNMoney.com) -- Oil prices plummeted Friday, erasing the previous session's spike, as the dollar strengthened and investors worried that a decline in demand will spread outside the United States. U.S. crude for October delivery dropped $6.59 to settle at $114.59 a barrel on the New York Mercantile Exchange. The drop in oil was the largest single-day slide in dollar terms since Jan. 17, 1991, when oil fell by $10.56. On that day, President George H.W. Bush withdrew oil from the Strategic Petroleum Reserve ahead of the first Gulf War. A stronger dollar makes crude more expensive for foreign investors, because crude futures are traded in U.S. currency.

Rising dollar values also pull investor money out of oil, since many use crude and other commodities as a hedge against inflation Global economies slow: The dollar was sharply higher versus the pound after the United Kingdom's 2nd-quarter gross domestic product was revised to no growth, below economists' forecast of a 0.2% increase, according to Tom Benfer, director of foreign exchange at Bank of Montreal. The pound was trading at $1.8526 Friday, sharply below $1.8778 late Thursday. When "one currency moves that far, the other currencies follow to an extent," said Benfer. The dollar has been trending higher for the past 2 weeks. "The events of the previous 2 weeks strongly suggest that we have seen the cyclical bottom in the U.S. dollar," said Serebriakov.

Some good news for the foreclosure/housing market. 

HR 3221, The Housing & Economic Recovery Act of 2008 recently passed and the President signed on July 30th 2008 . There are many elements to this bill a few key points are the following:

Up to a $7500 Tax credit for First time home buyers, full information about the credit can be found here www.federalhousingtaxcredit.com/

Basics are:

Only homes purchased on or after April 9, 2008 and before July 1, 2009
The tax credit is available for first-time home buyers only (defined as someone not owning there own home in the past 3 years)
The maximum credit amount is $7,500. The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The tax credit works like an interest-free loan and must be repaid over a 15-year period at $500.00 per year. Essentially it is a 0% interest loan from the Government.

In addition to the tax credit there are other important aspects to this bill: Source: National Association of REALTORS®

Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 8/22/08)

Additional Property Tax Deduction –HERA provides a one-year benefit that will be available to all homeowners. Under current law, property taxes are deductible only if an individual itemizes his/her deductions on Schedule A of their tax return. The new provision will permit a deduction of up to $500 ($1000 on a joint return) for all individuals who utilize the standard deduction and do not itemize. Instructions will be provided on the 2008 tax return when it is distributed at year-end.
 
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.


All good news! Might be small signs, slow progress perhaps but it is all in the right direction ^^^UP. So tell us,  Do you think the economy is improving?

Speak Now America! we want to hear from you!