Mortgage And Economic News And How It Affects Housing

This Article Is About Mortgage And Economic News And How It Affects Housing

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.

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The U.S. Economy Today During The Coronavirus Outbreak

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

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

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.