What’s Going on in The U.S. Economy Right Now?
The State of the Stock Market
The Nasdaq advanced 0.5% in the first week of the month of December and closed at another record high while S&P and Dow fell. In the subsequent week, the stocks opened modestly lower. The FDA produced records stating it is optimistic that the coronavirus’s trial data developed by Pfizer and BioNtech is in line to be approved for emergency use authorization. Two other biotech firms, Moderna and Johnson & Johnson, have applied for emergency use with the FDA as well, which could increase the number of people getting vaccinated and accelerate economic recovery time.
The Real Estate and Mortgage Situation
According to the CEO of real estate listing giant, Redfin, the housing market heated up during the coronavirus pandemic and could heat up further if more markets are put for sale. Despite the adverse effects of the pandemic, home sales have been a point of economic growth. The real estate market is witnessing higher revenue compared to the same period last year while mortgage rates are below 3%. This is expected to last through 2021, although experts warn that there might be a bust sooner or later.
New home buyers are encouraged to take advantage of this situation fast. As investors and first home buyers purchase homes, the housing market will likely withstand a wave of foreclosures.
Current State of the U.S. Economy
The U.S. economic climate is projected to recover faster than initially speculated. This is because the sectors directly affected by the recent pandemic are doing reasonably well. Recent analysis indicates a steady growth path ahead, with next year’s GDP projected to increase. Virus-sensitive service industries took a large toll in the initial stages of the virus, but most industries are showing a steady rise since the start of the pandemic.
The unemployment rate is expected to fall in the next year as it peaked at 14.7% when many workers were let go in response to the coronavirus epidemic. The hospitality sector took the worst hit, with more than three million people losing their jobs.
While there are some areas of the economy that are doing better than others, there’s still a long way to go. Economists speculate that the economy will not return to its pre-pandemic level until 2022.
So if you’re ready to get involved in the real estate market, we want to help! Get in touch with the professionals at Lynx Mortgage Bank today.
Lynx Mortgage Bank was founded by a small group of mortgage and financial professionals in Long Island, New York, seeking to offer customers a simple “no surprises” approach to the mortgage process. They offer a full range of products, from mortgages to home equity lines of credit.
Licensed Mortgage Banker; New York State Department of Financial Services.