In a press release sent out on June 10, 2020, the Federal Reserve announced it would keep the federal funds rate close to 0% through 2022. The benchmark rate is currently 0% to .25% and the central bank plans to “deploy policy tools to underwrite an emerging recovery for the U.S. economy from the COVID-19 pandemic.”

As the U.S. economy recovers from the COVID-19 pandemic, home building and housing, in general, will be the leading factor in the economic recovery. So far this is foreshadowed by the reports of gains for mortgage applications over the past two months and rising newly-built home sales.

The Fed also discussed the course of actions it will keep doing to support low mortgage interest rates and housing demand. For the time being, they will continue their quantitative easing policy. This means the Fed will purchase $80 billion in Treasuries and $40 billion in mortgage-backed securities every month.

The housing industry looks strong and has a promising future for the next several years. In fact, the Fed forecast a strong bounce back with annual growth at a 5% rate for the year 2021. With the rates near zero, the home building and housing markets have a great two years ahead of them. The Federal Reserve is ensuring there is credit available for households and businesses during these uncertain times. The Fed states they will, “do whatever it takes to return labor markets and the economy to where they were prior to the outbreak of the pandemic.”

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Reports show that the home building industry will be one of the biggest support systems to rebuild the U.S. economy after the economic downturn from the COVID-19 pandemic. Not only is the industry helping the economy but members of the home building industry are responding to the needs of their communities.

There have been many who have supported essential workers during the pandemic with food. Birch & Beam Custom Homes based out of Mifflinburg, Pa. provided lunches to emergency medical personnel at Geisinger Medical Center and Evangelical Community Hospital. Birch & Beam had help from a local restaurant and Wels Market for the food and Kopper Konnection, a local electrical contractor, delivered lunches and groceries. Another builder out of St. Louis, Fischer & Frichtel Homes along with the March of Dimes, provided meals to the Neonatal Intensive Care Unit staff at St. Louis Children’s Hospital.

“Our company values relationships and connections with the community. During this crazy time of fear and anxiety, we felt that we were able to step forward and offer hope to the people that we serve here in Central Pennsylvania,” said Birch & Beam owner Delmar Bender.

The Home Builders Association of Dayton (Ohio) and the Ronald McDonald House Charities Dayton sold raffle tickets to support the local Ronald McDonald House. Nine hundred tickets in a community-wide 50/50 raffle were sold and the proceeds help supply lodging, food, transportation and support to families with sick and injured children. The Ronald Mcdonald House also provided lodging for frontline healthcare workers during the pandemic.

“The House has been a symbol of hope and peace to Daytonians for more than 40 years, and, during these times they’ve seen their own homes as a source of safety and comfort. With those two sentiments, it is important that we support the House and homeownership for all throughout the region,” said HBA of Dayton CEO Eric Farrell.

The Greater Orlando Builders Association (GOBA) and its GOBA Foundation provided assistance to Embrace Families, a local organization that serves vulnerable children and families in Central Florida, by holding a week-long donation drive. The drive raised over $9,000 which was used to fill care packages for 115 older youth in Orlando’s foster care system and allowed Embrace Families Youth Services and Foundations to deliver 100 care packages that included a gift card to Publix Super Markets, snacks, toilet paper, masks and information to help keep them safe and healthy.

 

In the Dallas-Fort Worth area, the Dallas Builders Association organized compliance efforts for new social distancing guidelines and took part in drives that gave out hand sanitizer and mask. Phil Crone, the Dallas Builders Association who also had the virus, donated plasma that contains antibodies that will help with the treatment of the disease or prevention of COVID-19 in others.

“I’m keenly aware of the terrible toll the virus is taking, especially on older people. That’s why I’ve started convalescent plasma donations. I’m grateful I can help someone having a harder time with it than I did,” Crone said.

The National Home Builders Association is highlighting these continued efforts across the country throughout local communities. Stories can be shared via email to communications@nahb.org.

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