Hello, hello everybody. Facebook, YouTube, wherever else you may be watching us today. I am Sean Zalmanoff and this is your mortgage rate update for the week of March 22nd of 2021.
Hey, economists just put their revised GDP projections on the table and it’s early. I’ve had a lot of coffee, but evidently not enough. 6.5% is the new mark that the breadth of economists are predicting for GDP growth. What does that actually mean? Only once in the last 50 years have we exceeded or met 6.5% GDP growth. Obviously we’re coming off quite a year in 2020, but that’s pretty epic growth. Just as you’re thinking about whether you were not impacted or you were severely impacted, 48% of households in America last year had some sort of income loss. A you’re thinking about your fellow man and what somebody is going through today and maybe their attitude or lack thereof a good one, just cut them a little bit of slack. Last year might’ve been hard for him and who knows, maybe this morning was too.
We’ve got eight weeks of COVID numbers moving in the right direction, which means down in reported cases. Also attributes to down in deaths. Great job America on getting vaccinated, man. I know I want to go to rock concerts and see Cardinals baseball games so if that means a shot in my arm, I’m all about it. If you don’t want to, that’s fine too. But I want to get back to normal. Hopefully, our spring breakers in Miami right now, evidently there’s a revolt going on down there. They said, hey, everybody, come here. We want your money. And then they said, hey, everybody, don’t party. Good luck. Hopefully, we don’t see a spike in cases as they leave and come all the way back across the United States. It really will be a good sample size in how different areas that are heavily vaccinated and how that’s working. There’s nothing like on the job training or real-life science that we live to see the efficacy of what the vaccinations will do in real life for us.
That brings me to a couple things that that’s good for GDP. Well, maybe the partying, but definitely people getting vaccinated and life returning to normal. It’s good for housing. It’s one of the reasons we keep seeing rates go up a little bit, or actually really a fair amount. Now today’s a good day. The stock market’s doing well. The bond markets have sold off because of, Turkey’s doing some weird stuff. I’ll just let you Google it to find out. They were the first to do some things about a decade ago and now they’re the first to withdraw from those things. It’s amazing what a regime change does but not moving in the right direction for the betterment of man or woman, specifically in this case.
This year, so in January of 2011, everybody keeps being like, “Sean, I know you keep saying house prices are going to be stable and I know you keep saying they’re going to move up, but you’re wrong.” Well, I don’t think I am and here’s just one more stat for you. In January of 2011, 78,000 homes were foreclosed on in January of 2011. In January of 2021, 1,400 homes were foreclosed on. Guys, housing ended up pulling us out of the Great Recession. Housing has definitely mitigated and kept a lot of people in work during this COVID recession. It’s going to continue to pull us back out of it. Again, there’s more 33-year-old turning 33 for the next several years. Household formation is driven by families being created and more 33-year-olds create families than anybody else.
I think I might’ve told you this before, but somebody in the demographic of 30 to 39, single, 30% of y’all own a house. If you have a child, that jumps to 80%. If you have two children, it jumps to 82%. So these are just the things that are driving our housing and driving the economy. And seeing a lot of green shoots for the turnaround that we are experiencing. Again, I’m Sean Zalmanoff. My team is here to crush it for you. Go check us out, Google us. See what everybody else says about us and then give us a call and let us help you on your mortgage too. Appreciate you all. Have an amazing and awesome week. Peace.
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