The chief economist for Bank of America looked into his crystal ball recently and reported his findings to members of Congress.

The bottom line? Economist Mickey Levy says the U.S. economy is “fundamentally strong.” In other words, we’re humming along nicely. Here are other highlights of Levy’s predictions:

• The country's economic growth is sustainable, growing at a projected 2.75-3.0% pace through year-end 2006 and a projected healthy pace for 2007.
• The negative impact that slower housing activity will have on consumer spending is overstated.
• Consumer spending will continue to grow, though at a slower pace, despite concerns about a housing slide, the decline in the rate of personal savings, and increased debt.

While Levy acknowledges that the rise in short-term interest rates and slight increases have slowed housing sales a bit, overall activity is still high – and that bodes well for all of us, whether we’re currently homeowners or are striving for the American Dream of a place to call our own.

Why? Levy and other experts say that the basics – the nuts and bolts required for a healthy housing economy – are still in place. Things like our country’s solid economic performance, low unemployment, steadily rising personal income, and interest rates that are still low.

Homes in the lone star state attractive
That’s great news for all of us, especially for those who are considering buying a home this summer. And especially those who are buying a home in Texas.

Consider that housing markets across Texas are consistently noted as some of the most affordable in the country. Killeen was recently named the “fifth least expensive” housing market in the nation in a quarterly report by National City Corp., a financial holding company. The report looks at median home sales in local markets and compares them with the national average.

This isn’t the first time Killeen has been recognized for being an affordable place to hang your hat. The city’s prices have been below the national median since 1994, when a separate Coldwell Banker survey also showed the city at the fifth lowest.

El Paso and College Station were also cited as other affordable cities in Texas in a December National City Corp. report.

New home sales still on the rise
Even recent U.S. Census Department new home sales figures showed a 4.6% increase  instead of the 4% decline that experts expected. 

In May, sales of new single-family homes rose to a seasonally adjusted, annual rate of 1.23 million units according to the National Association of REALTORS® (NAR), a better-than-expected figure that experts attribute to nice weather, extra builder incentives, and scaled-back prices.

The same report from NAR found that the South had the strongest new home sales gain (6%), followed by a 5.3% increase in the West. The Northeast was the only area of the country where sales fell – a whopping 8%.

The fact is that with a strong economy, low interest rates, rising income levels, and a positive outlook, it’s a great time to buy a home of your own this summer. Especially in Texas.