Economic factors to watch out for – RISMedia |

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The real estate industry is unlike any other, as evidenced by the resilience of the market during this pandemic, when the economy as a whole was hit hard. However, most of the property is subject to overall recovery, and there are several economic factors that you should look out for:

Delta variant
Concerns about COVID-19 variants, especially the highly infectious strain of Delta, have begun to emerge, especially in low-vaccination areas where the virus has taken root.

This week, the Centers for Disease Control (CDC) revised their guidelines for mask use, changing their stance and recommending again that masks be worn indoors in parts of the US that are seeing delta growth. In some areas, there is already an impact on consumer confidence.

Stay tuned for updates on the upcoming RISMedia study evaluating the impact of COVID-19 and the Delta Option on real estate businesses.

Inflation
The latest consumer price index (CPI) by the Ministry of Labor, which is strong inflation gauge markets reported that consumer prices rose 0.9% in June, a sign that the situation continues to escalate. However, there are several elements pointing to the stabilization of the real estate market: low interest rates, stricter lending practices, and growth stock-rich households

Interest rates
Fed rates are still close to zero, and the committee is optimistic that the economy continues to “strengthen,” according to its latest report on Wednesday, July 28. The Federal Reserve still says it is nowhere near a rate hike. While Fed interest rates do not directly affect mortgage rates, they are a good indicator of what comes next.

According to Freddie Mac, the 30-year fixed rate mortgage (FRM) has only increased slightly to 2.80%, but still remains below the 3% threshold.

“As the economy works to return to its pre-pandemic state and the fight against COVID-19 options unfolds, owners and buyers continue to benefit from the lowest mortgage rates ever,” said Sam Hather. head economist. at Freddie Mac. “Largely due to current conditions, the 30-year fixed rate remains below 3% for the fifth consecutive week, while the 15-year fixed rate is hitting another all-time low.”

Supply chain
While the growing demand for real estate has been a boon for the industry, it has not come without consequences, especially in the form of worsening nationwide inventory shortages. The slowdown in global trade and supply chain constraints, especially in lumberonly raised home prices, forcing buyers to abandon their markets and maintaining a year-round competitive atmosphere that just now I’m starting to soften

The future of these economic indicators largely depends on the path of the pandemic. There is growing concern about new options, and while another quarantine period is probably not expected, new internal protocols could affect consumer confidence and the way real estate business is conducted.

Liz Dominguez is Senior Online Editor at RISMedia. Send her your real estate news ideas to lizd@rismedia.com



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