Weekly update on the economy and the housing market
August 6, 2021
- To keep up with the rapid changes COVID-19 is causing in the economy and the housing market, the Realtor.com® economic team provides a weekly blog and video update on the relevant real estate and economic information you need to know to navigate the housing market in these tough times.
- This week, Chief Economist Danielle Hale discusses the July jobs report and industries that see net hires.
- Danielle also discusses the latest light vehicle sales data and what it says about supply, demand and return-to-work expectations.
- Good news for buyers and homeowners looking to refinance, this week’s mortgage rates fall. And a Fed survey of loan officers shows that while mortgage credit has eased, it remains near the tighter end of the range.
- In housing, new listings have rebounded weekly housing trends report, and asking prices fell into single-digit territory for the first time in nearly a year.
- For more real-time updates, follow the realtor.com economic team on twitter: @rdc_economie.
- I’m Danielle Hale, Chief Economist for Realtor.com® and here’s what you need to know.
- This summer continues with a mix of “back to normal” and renewed health concerns. Due to the delta variant, covid cases are on the rise in all 50 states and mask wear is making a comeback. Despite these new concerns, summer vacations and travel have continued and that means business for vacation towns and industries.
- This is reflected in Friday’s jobs report. Just under a million jobs were created in July. The leisure and hospitality sectors, local public education, and professional and business services recorded the strongest growth in July. We have also seen a significant drop in the unemployment rate
- Although we saw hiring increase, car sales fell again – the 3rd consecutive decline. These drops reflect supply shortages and perhaps an overhaul of travel needs as businesses and workers navigate the new normal of how and where we work, with new covid concerns pushing back some back-to-work plans. previously published.
- Mortgage and bond rates fell this week as concerns over the delta covid variant prompted investors to wait and see an approach. This drop translated into a 6-month low for mortgage rates, good news for buyers and even better news for those considering refinancing who could benefit from the lower rates and the end of unfavorable conditions fees on refinancing. But Friday’s high job count could reverse that trend, so don’t wait.
- On top of that, the Fed’s survey of loan officers shows that in general, mortgage lending standards eased in the second quarter, especially for jumbo loans, which by the way were where lenders saw the greatest increase in demand. Yet, compared to the past 16 years, lenders have reported that residential loans are generally in the narrow end of the range.
- In the housing sector, new listings rose again as sellers sought to take advantage of favorable market conditions. Although seasonally there are fewer buyers on the market now than in the spring, homes continue to sell quickly – 18 days faster than a year ago.
- With more sellers in a slower seasonal market, home prices rose at a single digit rate for the first time in nearly a year. This favorable approach to buyers is a good sign, but the context is important, prices are still quite high.
- You will find the details and our housing data to download on realtor.com/research. And you can also follow us on Twitter for real-time updates.
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