WASHINGTON — Homebuyers considering a government-insured mortgage should make extra room in their budgets.
In an effort to reduce a potential budget shortfall, the Federal Housing Administration (FHA) will require homeowners to pay a monthly insurance premium for a longer period. This follows a decision this year to raise the premiums for all borrowers, the fifth such increase since 2009.
Although the increase should bolster the agency’s bottom line, it will make things more expensive for borrowers who depend on FHA-insured mortgages.
The insurance premium that buyers pay in addition to their monthly mortgage payment usually expires once 22 percent of the principal loan is paid. Now, all new borrowers will have to pay the premium for at least 11 years and up to the entire duration of their mortgage, according to the rule that went into effect Monday. read more »
OLYMPIA — The average annual wage in Washington increased 3.4 percent in 2012, to $51,595, surpassing $50,000 for the first time, according to the state Employment Security Department.
The average weekly wage rose from $959 to $992. These figures include only those wages that are covered by unemployment insurance.
Much of the increase was driven by a 6.1 percent increase in the number of insured workers earning more than $75,000. Overall, the average number of workers in Washington covered by unemployment insurance grew by 52,519 in 2012, an increase of 1.9 percent, and total earnings grew by nearly $7.4 billion, an increase of 5.4 percent. read more »
The economy is sending mixed signals about whether small businesses are truly recovering from the downturn of recent years. Here’s another reason for pause: The Bureau of Economic Analysis recently released its quarterly snapshot of corporate profits as a percentage of U.S. gross domestic product (GDP). Ed Dolan, an economist and writer of Ed Dolan’s Econ Blog, analyzed the numbers and compared it with other data sources. He discovered that while corporate profits have jumped nicely in recent years, the income of proprietors-unincorporated business owners that have legal forms of proprietorship, partnerships and tax-hasn’t kept pace.
According to his analysis, corporate profits reached an all-time high of 12.74 percent of GDP in the fourth quarter of 2011 and have remained pretty elevated ever since. read more »
As the budget battles continue in Olympia, state lawmakers are rightly focusing on the need to retain and expand good-paying aerospace and high-tech manufacturing jobs.
At the same time, we shouldn’t overlook — or take for granted — the considerable economic contributions of Washington’s traditional industries.
For example, forestry was the first economic powerhouse in our state, dating back to 1849.
The Washington Forest Protection Association reports that today more than 50,000 people are employed in forest products, including pulp and paper production. When you add in contractors and suppliers, as well as the economic impact of employee spending, Washington’s prolific forests support 118,548 jobs, paying almost $5.3 billion a year. read more »
One of my clients brought by a ledger his mother kept from January through February 1956. His mom was trying to track where all their money was going because they had no idea why they didn’t have enough left at the end of every month. What’s fascinating to me about this ledger is the impact inflation has had over the last 57 years. Here are a few items from this 1956 ledger that caught my attention: rent $40 per month; car payment $44 per month; gas & electric $11 per month; groceries about $80 per month; black and white TV payment $13 per month; and a swamp cooler payment of $6 per month. Their income was $77 per week; $309 per month; $3,706 per year.
When I plug some of these numbers into the Bureau of Labor statistics inflation calculator I found that $40 for rent in 1956 would be $342 today. I can’t imagine a family could find a home to purchase or rent at $342 per month today. read more »
Interest rates are at historic lows. But they will rise eventually. If you invest in fixed-income vehicles, such as bonds, what might higher rates mean for you?
As is almost always the case in the investment world, there’s no simple answer. First, it’s important to distinguish between short-term and long-term interest rates. The Federal Reserve is determined to keep short-term rates low until unemployment improves, but, in the meantime, longer-term rates may well rise.
Depending on your situation, a rise in long-term rates can present both opportunity and concern. The opportunity: Rising rates can mean greater income if you invest in newly issued bonds. read more »
The Associated Press
NEW YORK — New figures show Internet advertising in the U.S. is still growing at a robust clip as marketers pursue the growing online audience and data analysis helps to target their pitches at people most likely to buy their products and services.
A report released this week by the Interactive Advertising Bureau and PricewaterhouseCoopers says U.S. advertisers poured $9.6 billion into their campaigns during the first three months of the year. That’s up 16 percent from $8.3 billion at the same time last year.
For all of 2012, U.S. online advertising grew 15 percent. read more »
DETROIT — Full-size pickups once again dominated U.S. auto sales in May, as small businesses — increasingly confident in the economy — raced to replace the aging pickups they held on to during the recession.
Car buyers, too, were attracted by low interest rates and Memorial Day sales. Overall, U.S. consumers bought 1.4 million vehicles in May, up 8 percent from the same month a year ago, according to Autodata Corp.
The results suggest the auto industry will remain a bright spot in an economy that’s been slowed by weak manufacturing. And the boost from the industry will help sustain the economy’s steady job growth. read more »
Experienced economic developers will tell you to focus your attention on working with businesses already operating within your community to help them to grow and prosper.
Our team at the Kitsap Economic Development Alliance adheres to this philosophy of taking care of our economic base by making sure our existing businesses know they are valued; and, that we are here to help connect them to resources and relationships essential to their continued success. Nearly three-quarters of our alliance’s resources are deployed in executing business retention and expansion activities — chief among those is our Procurement Technical Assistance Program, which last year assisted over 200 local businesses in securing over $50 million in work with government clients. read more »
