The jobs recovery in August was light with only 235,000 more jobs. From the cyclical low point during the total lockdown in April 2020, 17 million jobs have been recovered. Still, another 5 million is needed to just reach back to the prior peak right before the pandemic. The latest unemployment rate was 5.2% with wages rising by 4.8% over the year.
Mortgage rates continued to remain below 2.9% for the last eight straight weeks. Specifically, according to the finance mortgage provider Freddie Mac, the 30-year fixed mortgage rate was unchanged from the previous week at 2.87%.
Despite the economic downturn as a result of COVID-19, the industrial sector has been the commercial real estate darling as it continues to be one of the more resilient assets, supported by the growth in e-commerce and last mile demand.
According to the mortgage finance provider Freddie Mac, the 30-year fixed mortgage rate inched up to 2.87% from 2.86% the previous week. Mortgage rates will likely rise in the following months; NAR forecasts the 30-year fixed mortgage rate to average 3.2% from October through December 2021.
A preference for cash sales has increased in a market where buyers are competing to make the best offer. Instant buyers or iBuyers and fin-tech companies are increasingly stepping into the market, not only making cash offers for their own account but also providing cash financing for buyers.
As of the second quarter of 2021, the largest metro areas (with populations of at least 2 million) are experiencing the toughest commercial market conditions compared to smaller markets.
Where do people move a year into the pandemic? Are suburbs and small cities gaining even more movers? As companies look beyond the pandemic, many are deciding whether to bring employees back to offices or allow them to work remotely and move away permanently.
Affordability declined in June compared to one year ago as the median family incomes rose by 2.3%, while the monthly mortgage payment increased 21.5%.
Mortgage rates showed little movement this week, with the 30-year fixed mortgage rate falling slightly to 2.86% from 2.87% the previous week.
Rents will be soaring in the coming months, especially for apartment units, as homebuilding retreated in July.
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