Market Update 12/18/2020
December 18, 2020
Lawmakers are close to an agreement on a $900 billion economic relief package. This package would include a number of relief efforts including an additional stimulus check of $600 and $300 a week for Americans on unemployment. Struggling small businesses will see billions of dollars in aid as will vaccine distribution and schools.
This passing of this bill will hopefully come before the expiration of federal aid programs that provide essential support for those facing extended unemployment. Lawmakers are working to reach an agreement before the deadline of midnight Friday to avoid a government shutdown. As we approach the end of 2020, economic aid becomes more crucial as a second surge in the pandemic grips the country.
$25 billion of the relief package will go to assisting renters who are struggling to keep up with their payments. Additional funding for the Paycheck Protection Program is included to assist especially hard-hit businesses. In this newly proposed package, Democrats conceded their $160 billion state and local government aid. As vaccine distribution begins, and we move into 2021 with hopes of containing COVID-19, lawmakers are also making efforts to provide relief for expensive surprise medical billing.
With a promising stimulus package on the horizon, the housing market moves into the new year with record low mortgage rates. The consistent volatility of the market is driving down rates and keeping them low. As low inventory is pushing up the average home price, the FHFA (Federal Housing Finance Agency) will increase its conforming loan limit for Fannie Mae and Freddie Mac from $510,400 to $548,250 at the start of 2021. FHA loan limits will also see a change with the FHA floor loan limit increasing from $331,760 to $356,362 and its loan limit ceiling increasing from $756,600 to $822,375 (limits varying by county).
As Capitol Hill moves closer to an agreement, we will continue to monitor current economic and market news and provide market updates to keep you informed.
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