Clarity on the post-COVID economic recovery
We are all looking for market clarity for post-COVID economic recovery. According to the most recent U.S. Household Debt and Credit report, Americans owe $14.3 trillion dollars. A mere $9.8 trillion of that is debt tied up in mortgages. So what does this mean for the future of our economy?
The takeaway can be seen from the $76 million dollar drop in our credit card balances (the largest drop ever recorded in the history of the report) from the consequence of COVID-19. This will in fact bode the speed in our economic recovery. If Americans are not spending, the economy can’t grow.
Although there is a light, most consumers who are home shopping remain highly qualified to buy homes, even in the current, shall we say “unique,” economic environment. This is a major positive! The consumers with less than perfect credit are remarkably a small component of new mortgage debt. So who is purchasing homes?
The age range of borrows that we are seeing are the ages of 30-39. The older Millennials and the youngest Gen Xers are out purchasing homes. Millennials are a major force in the U.S. home-buying market, and they will only get bigger over the next several years.
If you are considering purchasing or refinancing your home, do not hesitate to reach out to America’s Moneyline. We are to answer any questions about your current or future mortgage!