Remember a couple of years ago when small was the new big?
Home buyers during the recession were passing on the McMansions, building smaller homes instead.
The same held true for cars, boats, and RVs. Everything was getting smaller, right? Not so fast.
Bigger Homes and Trucks...again
The go-go days of the late 90s and early 2000s gave us the McMansion, those 5,000-square foot homes decorated to the hilt. Then came the recession and home buyers downsized.
But a new report in Time Magazine says "supersizing" is back.
The report says the average new home is 2,500 square feet, up from 2,400 just a year ago. And it quotes home builders who say requests are up for pre-recession-type homes, with all the size and amenities.
It also says TVs are getting bigger and bigger to fill the family rooms of these bigger homes.
Time says despite automakers push to small, fuel-efficient cars (required by the US government), shoppers are snapping up big trucks again, with full-size pickup sales up 20 percent over a year ago.
It says boat and RV sales are up 13 percent this year over a year ago, and up sharply from five years ago, a recessionary time when few people wanted to spend money on them.
All of this bodes well for the American economy.
But from the "doesn't that stink" file, how rising mortgage rates could put a kink in the economic recovery. Mortgage rates are now up almost a full point from the end of 2012.
The Wall Street Journal says each one point increase in rates makes a home 10% more expensive: Rising rates also make those trucks and boats more expensive too.
A big jump in rates could put a halt to the fragile economic recovery.
But for now, those rising rates have yet to impact the housing or auto sales market. As always, don't waste your money.
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