Good
news for the new year in the nation’s economy sector. According to CNN
Business, the housing market is thriving and will continue to thrive
into the new year boosting the economy in 2020.
Although the housing market is just a small factor in the boost, it still is important for the economy as a whole. Purchasing a home is one of the most important and largest purchase decisions one can
make.
Consumer spending makes up approximately two-thirds of US economic
growth.
“The housing market is probably going to be a modest tailwind to the economy,” David Berson, chief economist at Nationwide, told CNN Business.
Catalyst for the boost in the housing market stems from low mortgage rates, a strong labor market with rages that are rising and low unemployment rates.
Mortgage rates are at a three-year low and home loans are very affordable. The Federal Reserve says it will keep rates on hold for the time being which stands at about 3.96% to 4.01%.
The central bank cut interest rates three times in 2019. The cut makes the adjustable-rate mortgages cheaper according to Lawrence Yun, chief economist at the National Association of Realtors.
The US Labor Department reports the 21st straight month that the unemployment rates have been at or below 4%.
They also reported that wages are up 3.1% over the last year. On average, annual wages have increased 3% or greater every month since the summer of 2018. Unemployment is down near a 50-year low.
The National Association of Home Builders and Wells Fargo reported a 20-year high this December in the Housing Market index. In fact, the Housing Market Index did not even reach this high pre -2008 mortgage crisis.
Click Here For the Source of the Information.
Although the housing market is just a small factor in the boost, it still is important for the economy as a whole. Purchasing a home is one of the most important and largest purchase decisions one can
“The housing market is probably going to be a modest tailwind to the economy,” David Berson, chief economist at Nationwide, told CNN Business.
Catalyst for the boost in the housing market stems from low mortgage rates, a strong labor market with rages that are rising and low unemployment rates.
Mortgage rates are at a three-year low and home loans are very affordable. The Federal Reserve says it will keep rates on hold for the time being which stands at about 3.96% to 4.01%.
The central bank cut interest rates three times in 2019. The cut makes the adjustable-rate mortgages cheaper according to Lawrence Yun, chief economist at the National Association of Realtors.
The US Labor Department reports the 21st straight month that the unemployment rates have been at or below 4%.
They also reported that wages are up 3.1% over the last year. On average, annual wages have increased 3% or greater every month since the summer of 2018. Unemployment is down near a 50-year low.
The National Association of Home Builders and Wells Fargo reported a 20-year high this December in the Housing Market index. In fact, the Housing Market Index did not even reach this high pre -2008 mortgage crisis.
Click Here For the Source of the Information.
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