Mortgage Rates and News from Dara Delgado Home Loans

U.S. ECONOMIC LANDSCAPE

With the summer unofficially ending Labor Day weekend, what we have seen so far this year is out of the realm of normality. A strong economy and labor market were seen in January and February, only to reverse that strength as the pandemic-induced shutdown decimated the U.S. economy. Millions of Americans lost their jobs. Stocks crashed while yields and rates plunged.

Fast-forward to the present day, and we see both the economy and labor markets perking up. In addition, we could see the shortest recession on record here in the U.S. The housing sector has been a beacon of light in the economy, fueled by low rates and the rebound in the job market.

Bottom line: With the help from the Federal Reserve and Congress, the economy should continue to rebound in the months ahead as we move into the holiday season.

ALL THIS DURING A PANDEMIC

The median sales price of existing homes sold in the United States was $304,100 in July 2020, the first time in US history that the median sales price has exceeded $300,000.  The $304,100 median price is also a record on an inflation-adjusted basis, besting the $230,200 median sales price from July 2006 (14 years ago), equal to $293,096 in 2020 dollars (source: Nat'l Association of Realtors). 

NEED MORE, NOT LESS

The suppliers of lumber cut their production in the 1st quarter 2020 as the pandemic was developing in anticipation of a slowing housing market.  Instead, an increased demand for home building and renovation projects has pushed the price of lumber to an all-time record price of $858 per thousand board feet, up +111% from a price of $406 per thousand board feet at the end of 2019 (source: CME Group). 

TODAY’S INTEREST RATES - 9/8/2020