Economists Forecast Recovery to Begin in the Second Half of 2020

800 Terrace Dr, Lake Oswego, OR 97034
Listed by Yvonne Blewett | Offered at $1,559,000 | MLS# 20117172

From keepingcurrentmatters.com

Concerns about the country’s financial standpoint continue to come up daily now that everyone is thinking about the U.S. economy. The top question emerging is -when will the economy begin to recover? No one knows when the economic rebound is likely to happen, but expert economists are becoming aligned on when this will transpire.

Based on Economic Forecasting Survey from the Wall Street Journal, 85.3% believe a recovery will begin in the second half of 2020.

Chris Hyzy who is the Chief Investment Officer for Merrill stated they are fully expecting that the economy could begin to pick up in late June and July, then a strong recovery in Q4 of this year will follow.

Furthermore, five of the major financial institutions are also forecasting positive GDP in the second half of the year. Today, four of the five expect a recovery to begin in Q3 of 2020, and all five agree a recovery should start by Q4.

Leading economists, analysts, and financial institutions are all in agreement that the economic recovery should begin in the second half of 2020.

Full details on keepingcurrentmatters.com


Housing Market Positioned to Bring Back the Economy

Listed by: Jason Mendell
12160 SE Greiner Ln Happy Valley, OR 97086
Listed by Jason Mendell | Offered at $1,700,000 | MLS #19307064

From keepingcurrentmatters.com

Everyone is so focused on the American economy at the moment. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing agreement that the housing market is positioned to be that driving force toward the necessary improvement.

Some may question that statement as they look back on the last recession in 2008 when housing was the anchor to the economy – holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit.

According to Mark Fleming, Chief Economist of First American, many still live with the effect of the Great Recession. People may be expecting the housing market to follow the same path in response to the coronavirus outbreak. But, distinct differences are showing that the housing market may follow a much different path. The housing market may have led the recession in 2008-2009, it may also manage to bring us out of it this time.

Every piece of sold property has an impressive financial impact on local economies. As the real estate market continues to recover, it will act as a strong tailwind to the overall national economy.

Full article on keepingcurrentmatters.com


As Stay-At-Home Orders Ease, Homebuyers Are Getting Back In The Game

1832 SE Blue Skies Lane Prineville, OR 97754
Listed by The Vandenborn Group | Offered at $669,900 | MLS #220100645

From forbes.com

Homebuyers seem to be taking full advantage now that social distancing orders are being less tight across the country. According to the Mortgage Bankers Association, applications from homebuyers increased last week by 11%, marking the third consecutive week of increases.

The homebuying activity is still down 10% over the year, but that year-over-year gap is thinning out every week. The number of home buying loan applications in April was down 35% annually.

According to Joel Kan, MBA’s Associate Vice President of Economic and Industry forecasting, we can expect the wave of improvement to keep on spreading.

Refinance applications have been declining in recent weeks despite record-low mortgage rates. The average rate on a 30-year, the fixed-rate loan came in at 3.43%, but refinancing activity dropped 3% this week and 2% the week prior. This is probably due to a combination of factors, including stricter lending standards, increasing unemployment, and more time-strapped lenders.

If rates continue to drop, demand for refinances may see an even bigger spike. According to a report from Bloomberg, mortgage rates could drop below 3% in the coming weeks—well below the lowest point on record. This could add serious incentives for homeowners to refinance.

According to the recent Mortgage Monitor report from real estate analytics firm Black Knight, if rates drop to just 3%, more than 19 million homeowners could shave at least 0.75% off their mortgage rate.

This could mean a difference of around $80 per month and nearly $1,000 per year on a $250,000 home.

Full article on forbes.com