The surprising economic trend that defines this recession: Morning Brief
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According to the National Bureau of Economic Research, the current recession began in February.
And this economic downturn has been defined by a few major trends. Historic job losses in March and April. Unprecedented fiscal stimulus. A massive rally in the stock market. Millions of re-hirings through the summer.
But no trend has been more surprising as the booming U.S. housing market.
New, pending, and existing home sales have all surged through the summer. Mortgage applications have been on fire.
And on Wednesday, the September reading on homebuilder sentiment from National Association of Home Builders showed builders have never felt better about the housing market.
Not during the the 1990s expansion, the housing bubble of the 2000s, or the 2010s economic expansion that eventually grew to the longest on record were homebuilders as bullish on their prospects as they are today.
Instead, it was a global pandemic that laid the groundwork for a surprise housing boom.
“The suburban shift for home building is keeping builders busy, supported on the demand side by low interest rates,” said NAHB chief economist Robert Dietz. “In another sign of this growing trend, builders in other parts of the country have reported receiving calls from customers in high-density markets asking about relocating.”
In response to financial market dislocations from fears over the economic fallout of the pandemic, the Federal Reserve cut interest rates to 0% and has pledged to keep ...
More on: finance.yahoo.com