OSCG BLOG POST

Did You Know?

- 10/27/20

Did You Know?

The average U.S. mortgage rate for a 30-year fixed loan fell to 2.8% this week, another record low, Freddie Mac said in a report on Thursday. The rate fell one basis points from the week prior and is now six basis points lower than the original all-time low set in mid-September. The average fixed rate for a 15-year mortgage was 2.33%, falling from last week’s 2.35%. (Housingwire).

Next week, the U.S. will get economic news like it has never seen before, reflecting growth that had seemed impossible, as it is likely that US GDP will have risen by about 30% or more in the third quarter of 2020. In the middle of a pandemic. In the middle of a recession. In the middle of 12.5 million unemployed people. This after a 31.4% plunge in the second quarter. For GDP to fully recover, though, would require a 45% rise in GDP, so while 30+% is phenomenal, we still have quite a way to go before a full recovery. The Fed’s official forecast for 2020 is GDP to decline by 3.7%, which would be its biggest single-year drop going back through at least World War II. In 2021, the estimate is for a gain of 4%, which, conversely, would be the biggest increase since 2000. (CNBC).

Prospective home buyers are using short-term rentals as an opportunity to test out neighborhoods and cities before committing to a full relocation, according to data from Airbnb, a short-term rental network. The company reports a 128% increase from July to September over the same period last year in guest reviews that mention “relocation,” “relocate,” “remote work,” and “trying a new neighborhood.”

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