Trump Recovery: Pending Home Sales Rocket to New Record
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There can be little doubt that the last thing President Donald Trump wanted to do early on as COVID-19 began spreading across the country was shut down the fabulous, near-record-setting economy he and congressional Republicans built.
The president has talked about that often, mentioning it again during Tuesday’s first debate with Democratic nominee Joe Biden.
But there’s one thing about the Trump/GOP economy: It was built on very solid ground.
Here are some of those pillars:
-- The tax reform law cut corporate taxes by a lot, while also providing relief to Americans. This alone is responsible for the repatriation of American corporate assets and operations and no doubt led companies who were considering escaping our once-high corporate tax rate to change course and remain in the U.S.
-- The president and his administration have been cutting red tape and regulatory burdens since Trump's first week in office when he issued an executive order directing federal agencies to cut two regulations for every new one they enact.
-- The president's trade deals mean that global marketplaces are structurally better for American exports than at any time in decades.
-- Trump has also provided regulatory relief to the energy industry, allowing for new coal, natural gas, and oil production and making the U.S. nearly energy self-sufficient for the first time in a half-century.
With all that in mind, is it any wonder, then, that Trump's prediction of a "V-shaped recovery" is coming true?
As states and cities began to reopen and loosen coronavirus restrictions, record numbers of Americans went back to work. And now, just weeks away from the Nov. 3 election, here's more good news on the Trump economy from The Hill:
The number of homes under sales contract hit a record high in the National Association of Realtors' 19-year history of monthly surveys.
The number of pending homes increased 8.8 percent since July and were up nearly a quarter since last August. The pending home sales index reached a high-water mark of 132.8, meaning sales were 32.8 percent higher than the index's 2001 starting level of 100.
"While I did very much expect the housing sector to be stable during the pandemic-induced economic shutdowns, I am pleasantly surprised to see the industry bounce back so strongly and so quickly," said Lawrence Yun, the association's chief economist.
"Tremendously low mortgage rates — below 3 percent — have again helped pending home sales climb in August," he said, though he did say that some of the sales could fall through.
Meanwhile, Joel Kan, a forecaster at the Mortgage Bankers Association, noted that the number of homes being listed is not keeping up with demand from consumers.
"The competitive purchase market is putting upward pressure on home prices and reducing affordability," he said.
"New construction has picked up significantly, but that pace may not be sustainable given the rise in builder material costs and the upcoming colder winter months. That is why more existing supply is also needed to keep up with demand,” he added.
This is excellent news, of course, and it's just another reason why we need to give President Trump another four years. Imagine the economy he can build with another term.