Did you ever wonder why charts and graphs are put in an article of a newspaper?  They look so nice and pretty. You would think the reporters and editors would know we are not statisticians or economists.  Most of us do not understand charts and graphs.  Sure they put a nice blurb underneath the chart and try to explain to us in 10 words or less.  The lines and bars look great. Even when they insert a 3-D graph it looks great.  Your probably wondering why I am writing about charts and graphs and how it may have a profound affect on my life. Right?

If you take the time to look real close at the charts and graphs you can get an idea of what the graph and/or chart is trying to realistically state in terms of data. Most graphs are not accurate.  Most of the data in graphs and charts are manipulated to zero in on a certain area or problem.  It could be so minut the media and government likes to make things much bigger than it seems.  Statisticians and economists are paid to inform companies, news media, and the government where, why, when, and how the economy is doing.  They are forced to mathematically formulate an opinion if the economy and/or the Gross Domestic Product is going to drop.  Are factories orders down? Is unemployment on the rise?  Is new housing starts dropping faster than expected?  Do you get the picture now?  Statistics have been around before the turn of the century. It has been around since the Pharoahs of ancient Egypt kept their own statistics of how much wheat is stored and how long it would take to build a pyramid.  You can take statistics lightly or you can educate yourself to know what is going on in the world around you. 

When purchasing a home in todays world it is important to know what the market is doing. It affects the rates, prices on houses, real estate taxes, and job security.   So, next time you see a chart or graph look at it and instead of just following the line up and down take a ruler and you will find out what the graph or chart is really telling you.  It may shock you.  The small things do make a difference and it does matter. 

For more information about todays topic and other topics call Allied Mortgage Group at 215-355-5626.