The “Back to Normal” index was recently released by Moody’s and CNN and gives us a new way to measure the economic recovery post-coronavirus. The index hit a low point of 59% of normal in mid-April, at the height of the nationwide shutdowns, but by mid-August the index was back at 78% of normal. This means we are just about 50% of the way back in general economic terms.
Jobs have also come back at a significant pace with 1.4 million gained in August, setting the recovery at approximately 50% on the 22 million jobs lost during the pandemic.
Real Estate is one of the leading sectors in the current economy as sales of newly built, single-family homes rose in July to its highest pace since 2006. Sales increased 13.9% to a seasonally adjusted annual rate of 901,000 units, according to newly released data by the U.S.. Buyers are flooding the market thanks also to the low interest rates that have not seen significant changes in the past weeks. For the week ending September 3, Freddie Mac announced that 30-year fixed rates rose to 2.93% from 2.91% the week before. U.S. home prices rose by 4.3 percent annually in June, unchanged from May. And it seems that the good period for Real Estate will continue. As a matter of face in the second quarter of 2020, 11 percent of American adults were planning on purchasing a home over the next 12 months.