Another day, another piece of evidence that the U.S. economy is expanding.

Thursday, the Census Bureau released the April Retail Sales report. Excluding cars and auto parts, retail receipts rose for the 10th straight month and, at $321 billion, reached an all-time high.

Retail sales account for roughly half of consumer spending, and roughly one-third of the economy overall.

For home buyers and rate shoppers in Scottsdale , the sales figures have positive and negative implications.

On the positive side, more retail sales suggests more confidence in the U.S. economy. This can spark a growth cycle that benefits the country, on the whole.

1. Consumers spend more money
2. Businesses sell more product
3. Businesses expand payroll to meet new product demand
4. Governments collect more taxes; fund more projects
5. Consumers gain more confidence and the cycle repeats

Furthermore, rising employment rates help to support higher levels of home sales which, in turn, can lead to higher home prices in AZ.

This is why Retail Sales data is so important to Wall Street and economists. It can hold clues to the future of the U.S. economy.

On the negative side, however, rising Retail Sales figures can harm home affordability. In addition to the aforementioned pressure on home prices, a strengthening economy can lead to higher mortgage rates. The weak economy of 2009-2010 is a major reason why mortgage rates were so low for so long.

As the economy improves, therefore, it follows that rates should reverse.

Each 1/8 percent increase to mortgage rates raises a mortgage payment $8 per $100,000 borrowed.

Retail Sales are up 7 percent from a year ago.

Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Real Estate Websites | Arizona HUD Homes | Ariona VA Loans | Fix My Broken Credit | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes