Mortgage rates dropped to a new record low in July, while consumer spending continued to exceed expectations. But the latter has been overshadowed by concerns over the continued spread of COVID-19. Not surprisingly, consumer spending dropped off sharply in March and April, as economies shut down in an effort to slow the spread of the virus. But as economies began reopening, a swift rebound ensued, with the latest results showing consumer expenditures well beyond what was predicted. In June, retail sales jumped 7.5% compared to May. With consumer spending accounting for 70% of economic activity in the U.S., retail sales data is an accurate reflection of current financial conditions
The US weekly economic reports suggested a stronger than expected result. While investors remain concerned about the impact of the COVID-19, the mortgage rates dropped to record low rates. This is the second consecutive week that the mortgage rates have trickled downwards. The economy had suffered a partial lockdown due to the COVID-19 pandemic. The weekly report has shown that economic recovery might happen at a faster rate than analysts had earlier predicted. The ISM Services Index went up from 45.4 to 57.1 in one month. This was a much faster recovery than forecasted. Values above 50 suggest that the service sector has seen growth during this period. The investors are keeping a close eye on the ISM services index as the service industry accounts for more than two-thirds of the US economy.
Naples, Fla. (June 19, 2020) - REALTORS® kept busy in May as pent-up demand for homebuying resulted in a remarkable spike in buyer interest. As a result, showings in May increased 244 percent compared to showings in April. As remarkable, showings in May outpaced showings a year ago, which increased 5.5 percent compared to May 2019. According to the May 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), broker analysts reviewing the report found the data reflected the everlasting desirability of the Naples real estate market, even during the COVID-19 outbreak.
The Modern Economy The housing market has fluctuated dramatically over the course of the last twenty years. Today, the economy in general is changing rapidly. Experts use different metrics when they're trying to access the health of the economy and the housing market. Changes in any of these metrics can have complex consequences, making it difficult to predict exactly what will happen to the prospects of investors, customers, and home buyers today. Mortgage Rates Today Freddie Mack has been recording information on long-term mortgage rates since 1971, so experts have a lot of data to work with at this point. They can examine the changes that have occurred over the course of several generations at this point, making it easier to study the implications of changes in the housing market.
On Monday, June 8, 2020, the stock market seemed to be getting its legs back and moving upward again. The anticipation of businesses opening again had investors pushing valuations upward finally after weeks of floundering. However, on Friday, June 12, the market was pummeled back to the floor as government reports released were not taken kindly. The one respite was the Federal Reserve confirming they were going to keep interest rates low and the stimulus program going for the foreseeable future, a plus sign for both mortgage financing as well as investment bonds.
Good news on the jobs front is not good news for people applying for mortgages, but the news is not anything would-be homeowners should find too discouraging. Mortgage rates, at a record low just a week ago, spiked to 3.24 percent after a report by the US Bureau of Labor Statistics that the job rate had fallen unexpectedly to a still-high 13.3 percent. The 3.24 percent rate actually represents an increase of 3.51 percent, because the previous week’s rate was negative.
Mortgage markets lacked much activity this week despite decent gains in the stock market. Additionally, there was little change in rates and reports of low volatility over the course of the week. Experts feel the lackluster economic performance across the board was primarily caused by the pandemic. It was an unfortunate consequence of the virus, as was a drop in inflation rates. It had been thought that the inflation rate decline was keeping mortgage rates fairly low. The core personal consumption expenditures (PCE) price index, which had been a favorite indicator of the Fed, also saw small gains.
Tracing its roots back to just after the American Civil War, Memorial Day mainly commemorates those who fought and died in service to their country. However, in the wake of tragedies like 9/11 and the coronavirus, the holiday has taken on a deeply personal meaning to thousands of Americans whose personal heroes were ripped from them far too soon. Let's take a look at the history of this important day of remembrance.
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