Latest Struggles In Nation's Economy Will Have Negative Impact On Area, Experts Say
6:39 AM, Aug 4, 2011
San Diego is certain to feel the impact of the latest negative news on the economy, experts told 10News."The outlook is negative almost everywhere," said San Diego State University finance professor Dan Seiver.Seiver said he hopes the nation can avoid a recession, but added the economy will grow slowly, if at all. He believes the slow pace will hit San Diegans where it hurts."If the economy is weaker, it's less likely you'll get a raise on your job. If you're looking for a job, it'll be a little harder to find a job. If you want to sell your house that's underwater, it will stay underwater a little longer," said Sevier.Seiver also said the weakening economy could be bad news for some of San Diego's leading industries -- tourism and defense.If there is a bright spot in the economy, it is found in mortgage interest rates, which are at record lows.Nationally, the average rate on a 15-year mortgage has dropped to 3.54 percent, and a 30-year loan, on average, is 4.39 percent."Amazingly low," said mortgage broker Robert Feher. "Historically speaking, we haven't seen interest rates this low in most people's lifetimes."Feher said first-time homebuyers are in luck with those low rates, but he has not seen a rush of people wanting to refinance."Rates have been trending down for some time," he said. "So it's not as if today's news brings everyone out to the [refinance] boom. They've had the same problems then that they do now; generally, the equity position."According to experts, many homeowners still owe more than their houses are worth, so even low interest rates make refinancing almost impossible.