A second round of financial stimulus, solutions to stop the spread of COVID-19 and how the country handles delinquencies will be key factors in the United States’ economic recovery from its current recession, Freddie Mac Senior Economist Rama Yanamandra told Illinois REALTORS® Thursday.
Another important factor, she said, will be the results of the 2020 elections and any policy action taken by the federal government. Yanamandra offered her ideas during a free webinar for members, “2020 Illinois REALTORS® Housing and Finance Economic Update.”
Low interest rates and strong demand have helped the housing market bounce back fast, though inventory is a concern, she said. Mortgage originations are about to set records.
In Illinois:
- year-over-year home sales numbers are as high as they were in 2006,
- the number of weekly real estate showings since late May have been higher than during the same periods last year,
- housing prices continue to rise while incomes decline,
- the state’s August unemployment rate was higher than the national unemployment rate,
- Blacks, Hispanics and low-income workers were affected by unemployment more than other groups.
During her assessment of the U.S. economy, Yanamandra said:
- the country improved 33 percent in the third quarter after a similar contraction in the second quarter,
- the first stimulus program helped raise incomes of Americans but the positive effect is fading.
Yanamandra shared a color-coded map that showed the greatest concentration of COVID-19 cases in the United States is shifting to the Midwest, with South Dakota, North Dakota, Wisconsin, Montana and Utah as the top five. States that have paused or reversed their reopening plans accounted for 48 percent of the national gross domestic product.
