By Mike Bush
Editor
575magazine.com
The current recession still isn’t having a great deal of effect on the Roswell economy, although there is some evidence of slowdown, some Roswell business leaders said.
Dorrie Faubus, executive director of the Roswell Chamber of Commerce, said everyone is “a little bit afraid” right now because of news media reports of nationwide financial woes, but Roswell is doing well.
“Roswell has just been in such a positive light,” Faubus said. “Things are not great here, you can definitely tell there’s a recession, but not to the point the rest of the country can. Things are better here than in the rest of the country.”
Pioneer Bank President John Hitchcock said Pioneer is beginning to see “some slowness.”
“Certainly, consumer loan demand is down, but refinance activity on mortgage loans remains strong and there seems to be more home buying,” he said. “Folks are able to take advantage of favorable pricing. We are seeing purchase activity in our mortgage-loan activity. I take that as very positive.”
Jeff Smith, president and chief executive officer of PrimeSource Mortgage Inc., said lending is still strong in southeastern New Mexico.
“If you’ve kept your nose clean and you’re still paying your bills on time, then there’s money available to lend,” he said. Even for businesses, “if you have a good idea and a way to secure that loan, then it’s out there.”
He said when the national media say there is no money available for loans, “it’s because people with poor credit are trying to qualify.”
“But money still is available for expansions and growth,” he added, “I think especially here in Southeastern New Mexico. When you talk to more of the local, regional banks … those guys are ready, willing and able to lend money.”
Hitchcock said local banks avoided some problems of larger nationwide institutions, such as the problems with defaults on many mortgages offered at subprime rates.
“We are just not experiencing a number of problems other institutions may be experiencing in Nevada, California and Arizona,” he said. “For that we’re thankful.”
Smith said the housing market in Roswell is stable.
“We never went through the high point and really never got down to the low point (other areas experienced), but from August to September things have picked up quite a bit, I think primarily driven by interest rates,” he said.
He noted interest rates are down around 5 percent or even lower, and the federal government is offering an $8,000 tax credit for first-time home buyers. The tax incentive program, which originally was se to expire Nov. 30, has been extended to April and expanded to include those who purchased a home before the incentive was offered, he added.
Smith said a key to nationwide recovery is if the federal government continues to buy treasury bonds to keep the interest rate down to 5 or 6 percent.
“Then I think we’re going to have an environment where people continue to buy homes,” he said. “That should help us, give us a little more time for everything to rebound.”