As previously mentioned, 2021 marked one of the best years for real estate in recent memory. After the coronavirus pandemic stifled home sales throughout the country, the real estate market rebounded at a quicker pace than anticipated. However, the real estate market still deals with longstanding housing inventory challenges. In addition, rising home prices and mortgage rates produce a barrier to entry for prospective first-time home buyers.

After a strong performance towards the end of 2021, existing home sales experienced an unanticipated decline in December. Thus, home sales fell 5% from November to December 2021. However, the United States real estate market realized a massive 8.5% improvement over 2020. In doing so, existing home sales achieved their best year since 2006.

In the United States housing sector, home buyers face strong barriers heading into 2022. While December 2021 saw major FHFA changes, housing starts and home sales remain competitive.

The end of the year saw housing starts fall short of expectations. Meanwhile, consumer spending skyrocketed heading into the holiday season. After November surpassed October’s 30-year inflation high, the Fed planned to expedite its timeline for tapering bond purchasing. Finally, analysts expect to see plenty of volatility in mortgage markets towards the end of December as trading activity normally declines.

As the holiday season approaches, investors saw new home sales jump. Additionally, home values rose this year. Many factors play a role in the increase, particularly limited inventory and inflation. Currently, investors worry about future economic growth. This past month, the United States witnessed record-high inflation, supply chain struggles, and job growth struggles.

With COVID numbers growing but unemployment aid ending, it’s possibly very unstable for the economy as experts continue to monitor the ever-changing situations across the country concerning inflation, job growth, and the housing markets.

Housing and employment pulled pulled off a remarkable rebound after a tumultuous 2020. Last year, both sectors saw numerous setbacks as homes sat idle on the market while businesses laid off hundreds of thousands of workers. Taking a look at July’s data, we see that 2021 is singing a different tune.

The latest data shows that inflation continues its epic climb while home sales rapidly recover across the country. As a result, the outlook on economic growth and future Fed policy remains stagnant. The Fed stated that their core PCE target is 2.0%. In May 2021, core PCE rose 3.4% higher than a year ago. While this is slightly below the consensus forecast, core PCE jumped up from an annual rate of increase of 3.1% in April.

Many reports have revealed numbers below expectations as investors begin to look into what the rest of the year has in store as the economy continues to recover from the COVID pandemic.

The economy gained 916,000 jobs in March 2021; revisions added 156,000 more. Strength was seen in the hospitality and construction sectors. The unemployment rate dropped from 6.2% to 6.0%. Average hourly earnings, an indicator of wage growth, fell slightly. They were 4.2% higher than a year ago, down from 5.2% last month. Last week's key employment data revealed that companies are hiring back workers who were let go due to the pandemic even quicker than anticipated. At the end of February, job openings jumped to 7.4 million, well above the consensus forecast. The Department of Labor releases the total number of new claims for unemployment insurance each week; the latest reading was 547,000, the lowest level in over a year.

Recent reports have continued to show reasons for positivity related to the economy in job growth and inflation, but many investors continue to worry about the long-term effects leading into the rest of the year.

With more information and reports released, we can learn more about how the economy is continuing to move during a hectic start to 2021.

With constant change and uncertainty surrounding much of 2021 from the ongoing pandemic, potential COVID stimulus, and volatile mortgage rates, the latest reports share their positives and negatives.

The end of 2020 was an eventful one for the economy and its potential rebound after the pandemic.Vaccinations began to roll out, the holiday season showing positive signs, and the U.S. market continued its growth.

Like many Americans, you have probably wondered if end of year refinancing would result in a better monthly payment, lower interest, and an overall better financial situation for you and your family. However, December might truly be the best time to consider your options and decide if refinancing is the right next step.

The world is in a state of change as the most recent reports are released. Though a lot is still uncertain, there were positive signs for job recovery and in the housing market.

The effects of COVID-19 are being felt across the country and in lots of industries in many different ways. As for housing, this will affect how you buy and sell homes in the immediate future, especially because of the historic impact on mortgage rates.

With a world full of constantly changing factors that make impacts on the market, we have to look for the official numbers to make projections and find insights into the markets. Here are some findings from recent reports across the country.

Despite the fact that the coronavirus pandemic left millions unemployed, destroyed the economy, and saw businesses closing their doors left and right, there have been rising housing prices across the United States. Even though the market dropped in the beginning stages of the pandemic, it made a rapid and relieving recovery, with median home prices hitting a high in July in spite of the impending recession and economic crisis.

Even with all the madness going on, the housing market is historically driven by two factors: demographics and mortgage rates. And regardless of everything that has been going on, neither of these two factors has suffered in the wake of the coronavirus outbreak. It might seem counterintuitive given the current state of the world that the cost of homes is increasing, so why do home prices continue to climb?