Rising used car prices account for about one-third of the rise, with inventory shortages largely to blame. The latest data shows prices rising 5.4 percent over the last 12 months, the highest 12-month rate in over a decade. That's compared to the 2.3 percent rate in 2019 and 1.7 percent rate in 2020. Recent projections indicate that prices will rise about 5.5 percent in 2021, though the Fed believes inflation will be more like 3.0 percent. While certain experts foresee some of the strongest economic growth in decades, many are also worried about higher inflation. Bigger investors are still betting on the strong economic recovery continuing as the year progresses. Individual investors, flush with extra stimulus cash, have poured into the market. Concerns about the Delta variant and lagging vaccination rates in parts of the world still linger. It regularly sets new record highs, or at least approaches them. The Dow Jones remains far above where it was at this time last year. The stock market continues to perform well too. And of the homes that sold in June, 89 percent were for sale for less than a month. Housing inventory increased over May, but was still down 18.8 percent year over year. Much of that rise was helped along by houses priced above the median. That number rose or stayed the same all over the country. The National Association of Realtors recently reported that the national median sales price for an existing home hit $370,600 in June, up 24.4 percent from June of 2020. The housing market has also surged, thanks to low interest rates and people stuck at home realizing the limitations of their living space. With many households sitting on a lot more money than they had in early 2020, pent-up demand has helped drive the broader economy during the rebound. On Face the Nation, Bank of America CEO Brian Moynihan estimated that its customers have not spent 65-70 percent of their last two stimulus checks. In June of 2021, it sat at 9.4 percent, still above the 8.3 percent from February of 2020, the month before the pandemic started. The personal saving rate ballooned to 33.7 percent in April of 2020 and has remained well above pre-pandemic levels ever since.
WILL THERE BE ANOTHER STIMULUS CHECK IN APRIL 2021 PLUS
And with fewer places to spend money during the pandemic, plus three stimulus checks, many Americans saved more than they might have otherwise. Many jobs performed at a desk in an office are just as easily performed at a desk in someone's home. By that general measure, the economy has already recovered.īroad segments of the workforce have endured little economic hardship during the pandemic. The country's gross domestic product (GDP), an estimate of economic activity across the U.S., has already surpassed pre-pandemic levels. The Conference Board forecasts continued growth through the rest of the year. ( Supply shortages may have prevented even faster growth.) That continues the torrid pace from the first quarter, which saw 6.4 percent growth. economy grew at an annualized rate of 6.5 percent, according to the advance estimate from the Bureau of Economic Analysis. Opinions differ on whether another stimulus check is necessary. They seem to have worked to some degree, but have also helped many who didn't actually need it. Relief payments were intended to ease COVID's economic impact and support the economy in the process. The ARP checks closely followed the $600 payments from January, which came nine months after the $1,200 payments from the pandemic's early days. Since then, about 169 million people have received up to $1,400 each, accounting for most of the $422 billion set aside. The third round of relief payments started back in March, courtesy of the American Rescue Plan (ARP). Some clues might signal where things are heading. That question is still part of the national discussion. Can Americans expect another payment in 2021? Despite the available aid, a fourth stimulus check might better serve those still in need. As of July 15, the new Child Tax Credit is helping some families. Meanwhile, the federal eviction moratorium ends this week, and millions of people are still short of food and behind on bills. Many states have already discontinued the federal unemployment bonus. Unemployment still exceeds pre-pandemic levels, even with jobs widely available in certain sectors. Some people's finances have improved, while other people's have not. The rising economy isn't lifting everyone, however. But life around the country is settling into a new normal, and economic conditions are generally improving. The pandemic continues, as the Delta variant pushes case numbers up among the unvaccinated in many states. ( CBS New York) - Stimulus checks have helped families during COVID, especially those that lost income.
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