The pandemic continues to present health and economic challenges across the globe, making the market a challenge to navigate. While the concerns are real, the U.S. economy continues to bounce back. Unemployment remains elevated but it has improved a great deal from the March lows. Positive reports this week on manufacturing, retail spending, and savings are all good news for the economy as we head into the holiday season. Homeownership remains on a tear, especially in the suburbs. It will be interesting to see how urban life is re-defined as working from home becomes the new normal, and whether this trend sticks post-Covid.
Rates will be low for some time. While it is hard to see rates go much lower, it’s possible that interest rates could dip even further. Covid-19 infections are on the rise in Europe and the U.S. and that could play a role. However, the odds seem in favor of a gradual rise in interest rates over time as we all adjust to the current environment.