Mortgage And Economic News And How It Affects Housing

This BLOG On Mortgage And Economic News And How It Affects Housing Was UPDATED And PUBLISHED On November 12th, 2020

What is a recovery?  What is a recession?  What is a depression?  Mortgage And Economic News indicates that housing prices is increasing despite the highest mortgage rates in 10 years:
  • Let’s start with the bad before we focus on the good
  • In order to be in a downturn, there must have 2 consecutive quarter or six months of negative growth of the Gross Domestic Product
  • This accounts for the value of all good and services produced within border or nation
  • A depression, is a negative growth or a downward number in six consecutive quarters in a row(18 months)

This nation has had countless recessions and some depressions.

The U.S. Economy Today During The Coronavirus OutbreakMortgage And Economic News

The U.S. economy and the housing market today is booming. Under the Trump Administration, the country is back on track to become an international leader.

  • Unfortunately, Democrats are becoming a nuisance to the growth of the nation and a major pain in the ass to President Trump and Republicans
  • Under the leadership of President Donald J. Trump, Americans are enjoying a great economy and financial security
  • Many Democrats used fear when the coronavirus outbreak broke out in February 2020
  • Many Democrats said the housing market will have another housing meltdown and the economy was going to enter another Great Recession worse then the 2008 financial crisis
  • The Dow Jones Industrial Average hit an all time high of 29,000 prior to the coronavirus outbreak in February 2020 and tanked as low as 18,000
  • Democratic leaders predicted the unemployment rate will hit over 35%
  • Unemployment did hit almost 20%
  • Over 50 million Americans have filed for unemployment
  • There was no cure for the coronavirus pandemic
  • However, President Trump and his administration approved the CARES ACT and signed it into law
  • The economic recovery is remarkable
  • The housing market is stronger today than it was prior to the pandemic
  • The GDP is setting historic highs
  • The Dow Jones Industrial Averages surpassed the 29,000 mark and so did the other market indices

The housing market is booming with more buyers than inventory of homes.  However, the November 4th election is in dispute due to allegations of voter and election fraud by the Biden/Harris Team and Democrats. From the evidence presented, it seems voter fraud was widespread and the victim of cheating was President Donald J. Trump.

The Economic Impact Of The Great Recession Of 2008

The Great Recession of 2008 has proved to be more of a Depression than a recession:

  • The 1870’s and 1930’s were considered depression decades, but many years like 1921,  the economy was in downturn for a full year
  • When there is a depression, unemployment rates are very high for those seeking work (25% by mid 30s) and inflation can also run high
  • In the late 70’s, we had a period of stagflation, which was high inflation, high interest rates, high unemployment, and little growth

In this article, we will discuss and cover Mortgage And Economic News And How It Affects Housing.

Mortgage And Economic News On Economic Recovery

 Now, what is recovery?
  • Recovery is two consecutive quarters of positive growth following a recession or depression
  • This becomes a”what does this mean to me” scenario
  • If the economy is growing, but incomes are flat, less people are participating in the workforce (well cover that), then who is it growing for?  
  • Big businesses? Investors?  Of course
  • A growing economy and larger wages means little if income after all expenses is down

Here is an example:

  • live in San Francisco
  • make 250k a year
  • which by number standards
  • puts the person in the top 2-3% of earners in the country
  • tax rate federally is 33%
  • Then the state tax rate is about 10%
  • Right there worker is at 44% before they have seen a dollar

Mortgage And Economic News On Housing Values

What are the mortgage and economic news about the value of housing?

Mortgage And Economic News indicates that home values will increase even more despite the highest mortgage rates in 10 years. President Donald Trump has definitely changed the world of politics by having a businessman as the head of the White House. The economy has been on fire with good news after good news after President Donald J. Trump took office.

  • Mortgage And Economic News and numbers show that the economy is hot and strong
  • Lowest unemployment numbers in decades
  • Home prices have been increasing substantially in most parts of the United States
  • Interest rates have been the highest in ten years but higher mortgage rates have not put any dent in slowing down housing

There is more demand in housing than the inventory of homes.

How Taxes Affect Housing And Buying Power

Now if a person owns their own business, and contributes to their own social security, and Medicare is about 15.3% up to 100k, this pushes them over 50% on income.

  • If a person owns a home, they pay a Real Estate tax of 1-2% of their home value (average starter home in the Bay Area is pushing 750k-1million)
  • That’s another 7500 dollars, which is another 3% of their take-home
  • Then they have a sales tax, which I cannot honestly compute
  • This is because people have different spending habits

The point is it is not what they make, but what they get to keep.

Labor Participation Rate

Back to this thing called a Labor Participation Rate. What does it mean?
  • People who either are working or seeking employment between the ages of 16-64
  • This age demographic should be updated
  • For one, people wait longer  to enter the workforce and two, people are working longer
  • Nevertheless, this number was calculated at 62.6, the lowest level in forty years
  • People who are no longer looking for work are not included in this number
  • When they say 4% of the population or 14 million people have given up looking for work altogether by leaving the workforce
  • This pushes those who are working to work harder to take care of more people dependent on the economy
  • Take that with the roughly 7-10% percent on some form of financial assistance
  • These figures are described to make people angry, or push them to vote a certain direction
  • They are merely to give facts to raise awareness of what may lie ahead
  • Whether it is debt, or government assistance, which most take at one time, those that do not will hold the upper hand

Those that can pay for things in cash, own investments that earn income, and do not need retirement from an employer,  a municipality, a state, or a federal government, they will be in a position of greater leverage.

The Political Divide In The United States And How It Affects The Housing Market

There is no doubt President Donald J. Trump will win reelection.

  • If you look at all states are are in a financial crisis like Illinois, New York, California, they are all led by Democrat governors
  • Democrats have a reputation of lying, cheating, stirring trouble, corruption, and voter fraud schemes
  • Most public corruption convictions are from Democrat politicians
  • For example, it only took freshman first term 5’5″ 500 pound obese JB Pritzker four months after getting elected Illinois governor to get himself under federal criminal investigation for tax fraud in April 2019
  • JB Pritzker’s criminal investigation is still ongoing as of today
  • JB Pritzker and his wife MK Pritzker got caught after committing an elaborate tax fraud scheme that saved them $331,000 in property taxes on a home they owner in Chicago’s Gold Coast
  • Former Vice President Joe Biden and California Senator Kamala Harris prematurely declared themselves as winners of the 2020 Presidential election when not a single state’s electoral college officials declared them as winners
  • Biden has a lot of questionable character issues and so does Kamala Harris
  • We will keep our viewers updated when President Trump gets reelected President of the United States as the voter and election fraud fiasco gets resolved and find the Democrats have cheated on the 2020 elections

Regardless of the political divide in the United States, from what President Trump has done in the past four years, the housing market and the U.S. economy is expected to thrive for years to come.

About The Author Of Mortgage And Economic News Ron Granado

This article on Mortgage And Economic News was written by Ron Granado.  Ron Granado is an associate contributing editor for Gustan Cho Associates. Ron Granado is a veteran real estate and finance expert and is a title company executive with Plymouth Title Guaranty Corporation.  Many real estate attorneys, realtors, consumers, and mortgage bankers seek the professional advice of Mr. Ron Granado on his expertise in all aspects of real estate and title issues.

Ron Granado

Account Executive | Plymouth Title Guaranty Corp

1301 W. 22nd Street | Ste 505 | Oak Brook, IL 60523

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