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Freddie Mac Chief Economist Sam Khater says these drops have led to increased home buyer demand and have been capitalized into asset prices to support the financial markets. "However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses," says Khater.
"The roller coaster of optimism and pessimism regarding the economic outlook continues," said Danielle Hale, chief economist at Realtor.com. "On the downside, an escalating number of coronavirus cases in a growing number of states demonstrates how hard the virus is to contain, especially when trying to jump-start the economy. On the upside, signs of progress toward a coronavirus vaccine give hope that there's a path to a new normal where health concerns don't dominate decision-making," says Hale.
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