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More Evidence of Strength in Housing as GDP Tumbles
Monday, August 3, 2020
The National Home Builders
Association (NHBA) has been saying since the COVID-19 virus first began to
ravage the economy, that it might be housing that would drive the eventual
recovery. Now they have some real evidence. The record setting 32.9 percent
second quarter decline in the gross domestic product (GDP) revealed on Thursday
had at least one bright spot. NAHB's chief economist Robert Dietz says the
share of residential related economic activity reached its highest mark since
the third quarter of 2007, increasing to 16.2 percent during the otherwise
dismal quarter. Part of the reason for the growing share, of course, was the
weakness of other sectors, and the residential fixed investment share held at
3.3 percent of GDP.
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