Photo by Tierra Mallorca on Unsplash
This week, we take an in-depth look at the influence of the pandemic and recession on the housing markets, plus some specific advice for millennials to help keep your financial house in order during the crisis.
Pandemic Housing Market
With all the economic mayhem, the housing market has remained pretty stable. While fewer people have been selling, fewer have also been looking to buy, keeping prices relatively level. The demand for new construction is still higher than supply. Rental rates haven’t changed much, either. But renters haven’t gotten the same kind of government relief that homeowners have, making housing just one more area where the recession is hitting lower wage earners harder.
Skyrocketing Mortgage Applications
The supply and demand that have stayed steady through the past months are also poised for a hand-in-hand increase with the economy reopening, reports Business Insider. New mortgage applications are 13 percent higher than they were a year ago, and refinance applications are a whopping 80 percent higher, thanks to record-low interest rates.
The Rest of the Story
Of course there’s more to the housing market stories than just steady pricing and a balance of supply and demand. It’s hard to say what will happen when government dollars aren’t flowing into everyone’s bank account anymore. For the story-behind-the-story that the stable numbers conceal, check out this article by Brad Hunter at Forbes.com.
Financial Advice for Millennials
What should your priorities be in your personal finances right now? Budget, cash flow, emergency savings, investments, and short term goals, says certified financial planner Chris Russell in this helpful video. It’s aimed at helping millennials make sound financial decisions, even in the middle of a recession. Worth the 7-minute watch!
The Latest From the Fed
This June 10 press release from the Federal Reserve is a good breakdown of the measures they’ve taken to aid the economy up to now. It also summarizes their position and goals going forward. Considering the Fed’s massive influence right now, you might like to bookmark the site so you can get up-to-the-minute information straight from the source.
We hope you’ve found this week’s links helpful! If you’ve ever thought about renovating your house to go green, check out our latest article on all the different ways you can finance it. Thanks for reading!
