Daily News 10/30/14
October 30, 2014
Thursday – October 30
U.S. growth in the third quarter of 2014 declined from the previous quarter led by broad based gains across the economy. Government spending was a big driver of the gains due to a pickup in defense spending. The Gross Domestic Product (GDP) rose by 3.5% in the third quarter, down from the robust 4.5% recorded in the second quarter. However, within the report it showed that consumer spending grew at a 1.8% rate, down from the 2.5% recorded in the second quarter, while business investment also declined. GDP measures the value of the production of goods and services in the U.S.
The Federal Reserve ended its easy money policies at its Federal Open Market Committee meeting, which has been an ongoing program since early 2009. The Federal Reserve has been purchasing Mortgage Backed and Treasury securities in an effort to spur on economic and job growth. The Unemployment Rate has gone from 10%, at the height of the Great Recession, to the current rate of 5.9%, while Gross Domestic Product has gone from -8.2% in the fourth quarter of 2008 to the present level 3.5% . The next step the Federal Reserve must take is to begin raising short term interest, which have been near zero percent since December 2008.
Rental prices for apartments have risen 7% in the past year, while in the same time wages have risen just 1.8%, which has made it increasingly harder for Americans to afford the payments. The average renter now spends about 30% of their income on rent, up from the norm of 25%. Real estate experts predict that rental prices will continue to rise for the foreseeable future. In a recent report, 85% of property managers have raised their rental rates over the past year.