If you’ve been driving lately, you’ve noticed that the cost of a fill-up has gone down.

According to GasBuddy.com, retail gas now costs $2.52 per gallon, on average nationwide.  Since peaking in mid-June, gas prices are down 6 percent.

For the economy, this is an important story.

Because Americans are spending less at the gas pump, they’re left with additional dollars to spend in other ways including for everyday items like food and shelter, plus for luxury items, too.

Consumer spending accounts for a huge part of the U.S. economy and falling gas prices give economists one more reason to believe a full economic recovery may be close.

With Back to School season around the corner and the holidays looming, a mini Wealth Effect could propel the economy forward and out of recession.

Falling gas prices can be good for mortgage rates, too.

Because rising gas prices are associated with inflation and inflation is linked to rising mortgage rates, the opposite is often true, too.  When inflation pressures recede, mortgage rates tend to fall.  And that’s what we’re seeing in today’s market.

As gas prices have fallen, mortgage rates have, too.  As a result, home affordability is up.

Related posts:

1. Mortgage Rates March 25, 2009 – Oil Prices Are Climbing Another calm day in the MBS market (FNMA 30 YR...
2. The Ice Just Broke – Credit Crisis Starting To Thaw, 4% Mortgage Rates? The Federal Open Market Committee voted to leave the Fed...
3. Mortgage Rates This Week : November 16, 2009 Mortgage markets improved last week as foreign buyers of mortgage...
4. As Mortgage Rates Rise Gas Does Too It's bad news for home buyers and mortgage rate shoppers....