Real Estate Blog by Joe & Liz Edwards

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Economic Slowdown: What the Experts Are Saying More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the  National Bureau of Economic Research : “A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.” Bill McBride, the founder of  Calculated Risk ,  believes  we are already in a recession: “With the sudden economic stop, and with many states shutting down by closing down schools, bars and restaurants…my view is the US economy is now in a recession (started in March 2020), and GDP will decline sharply in Q2. The length of the recession will depend on the course of the pandemic.” How deep will it go? No one knows for sure. It depends on how long it takes to beat this virus.  Goldman Sachs ...

How Interest Rates Can Impact Your Monthly Housing Payments Spring is right around the corner, so flowers are starting to bloom, and many potential homebuyers are getting ready to step into the market. If you’re thinking of buying this season, here’s how mortgage interest rates are working in your favor. Freddie Mac   explains : “ If you're in the market to buy a home, today's average mortgage rates are something to celebrate compared to almost any year since 1971… Mortgage rates change frequently. Over the last 45 years, they have ranged from a high of 18.63% (1981) to a low of 3.31% (2012). While it's not likely that the average 30-year fixed mortgage rate will return to its record low, the current average rate of 3.45% is pretty close — all to your advantage .” To put this in perspective, the following chart from the same article shows how average mortgage rates by decade have impacted the approximate monthly payment of a $200,000 home over time: Clearly,...