How might the pandemic affect future homebuyers? {Market Report} June 12th

An optimist is a fellow who believes a housefly is looking for a way to get out.

I saw a stationery store move.

I don’t have a bank account because I don’t know my mother’s maiden name.

There’s one thing about baldness, it’s neat.

My plumbing is all screwed up. Because it turns out, I do not own a garbage disposal.

Now The Market Report . . .

Consumer prices fell for the 3rd straight month in May. Underlying inflation was weak, as demand remained subdued. Low inflation will help keep rates low.

At their June meeting, the Fed renewed their commitment to purchasing mortgage bonds. Their purchases increase demand and support low rates.

Initial jobless claims last week came in at 1.542 million, continuing the trend of weekly improvement. The continued claims number also fell to 20.929 million, from 21.268 million.

Investors appear to be paying more attention to some of the headwinds that exist for a rapid recovery.Many financial experts are expressing concern that the stock market has become way overvalued. Now with COVID resurging, investors are starting to pay more attention. This became clear on Thursday when the Dow Jones Industrial Average declined by more than 1800 points.

The pandemic seems to have made buyers even more eager to purchase a home. A recent survey shows first-time buyers and millennials may be the most motivated.

Housing experts predict the pandemic may make consumers more dependent on agents moving forward. Agents are increasingly employing technology to digitize sales.

The pandemic will likely speed employers’ adoption of remote work. As consumers untether from offices, they will have more flexibility to move away from expensive cities.

Mortgage rates are at record lows, and housing inventory is declining. With all of the pent up demand for housing that has existed for years, it now appears to have gone to a whole new level. In almost every market in the country, there is a shortage of available properties.

“It’s not what you look at that matters, it’s what you see.”
Henry David Thoreau

This week’s potential market moving reports are:

Monday, June 15th:         None Scheduled
Tuesday, June 16th          Retail Sales, Job Openings, Industrial Production
Wednesday, June 17th:   MBA Mortgage Applications, Housing Starts
Thursday, June 18th:      First Time Jobless Claims
Friday, June 19th:            None Scheduled

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