Pandemic, Election, and the Economy (con’t.) 3. Higher interest rates a. Mortgage interest rates since March 16, 2020 have fallen dramatically as indicated by the table below.
Date Oct. 23, 2020 March 16, 2020 Source: NerdWallet
Average 30-year Fixed APR 2.961% 3.901%
Average 15-year Fixed APR 2.563% 3.299%
Average 5/1 ARM APR 2.939% 3.421%
4. Extreme and Persistent Unemployment a. The national unemployment rate rose from 3.5 percent in February to 4.4 percent in March. b. Total nonfarm payroll employment rose by 661,000 in September, and the unemployment rate declined to 7.9 percent, the U.S. Bureau of Labor Statistics reported today (Oct 2, 2020) January February March April May June July August 2020 3.6 3.5 4.4 14.7 13.3 11.1 10.2 8.4 National Unemployment Rates | 2008 – 2019 Reported by Bureau of Labor Statistics
Sept. 7.9
The down 46.3% in five months. This is an amazing statistic. Many businesses are reporting that it is higher than should be as many employees are not returning to work when called. Oregon and Washington Oregon 1. State and Regional Debt Crisis a. “In August, Oregon lawmakers held a special session to close the then-predicted $1 billion shortfall in the state budget. But, with the new revenue forecast Oregon could end the current two-year budget with a $1.7 billion “cushion.” Reported KTVZ News on September 23rd. b. The same day the Oregon Office of Economic Analysis reported “The economy remains in a Great Recession-sized hole. The strong economic growth of recent months is encouraging. However, it usually takes a year or two for recessionary shock to work through the economy. I will let you decide by reading the official report linked below. https://oregoneconomicanalysis.com/2020/09/23/oregon-economic-and-revenue-forecastseptember-2020/
John L. Scott Real Estate Columbia Basin Region 2
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