Page 10 - July 2020 Issue.indd
P. 10

DOLLARS AND SENSE                                              by Tolbert Rowe



                                    A Year That Will Live in Infamy


            “A Day that will  live in Infamy”, original   Here we are, half way through 2020 with   rates were considered low, but the real
            words used by Democrat President   over 40 million workers unemployed   estate market was slow. During these
            Franklin Delano Roosevelt to describe   and in many cases tempted to stay   times unemployment had increased to
            the atrocity of the Japanese attack on   that way by $600 per week of Federal     more than 6%. I observed during these

            Pearl Harbor December 7, 1941, is eerily   government benefits that, when added   times that there was a lack of fi rst-time
            an appropriate description of the year   to state paid unemployment benefits,   homebuyers. Worried that the threat
            2020. And it is barely half over.  mean a pay raise for over half of the   of unemployment would hinder their
                                               workers receiving the benefits. But being   ability to service a long-term debt like


            Enjoying the benefit of a soaring economy

                                               laid off and hungry during a Pandemic   a mortgage payment, they delayed their
            with a record number of Americans
                                               is a tragedy and something had to be   decision to buy. Renting a home is less
            gainfully employed, President Trump
                                               done. Equal blame goes to liberals and   of a commitment.
            began the year enjoying the adoration
                                               conservatives for poor leadership.
            of his supporters at political rallies                               Without first time buyers you cannot
            all over the country and the scorn of   But here we are. The stock market   have move up buyers. I have assisted a

            his detractors, while enjoying life and   has nearly returned to pre-Pandemic   first-time buyer that was the fi rst domino
            playing as much golf as he could feasibly   levels, interest rates are bouncing along   that needed to fall for two, three, or

            fit into his schedule.              at historic lows, homes or apartments   even four other transactions to come to
                                               for rent are scarce and when they do   fruition. For the very reason a person
            But much like at Pearl Harbor, we
                                               become available rental prices have   makes the decision to purchase their fi rst
            suddenly came face to face with an
                                               increased 10-20%. And among the   home, established homeowners sell and
            enemy whose intent is to kill. But
                                               paranoia of living and moving during a   move on to other homes; a comfortable
            instead of being a killer that you can
                                               pandemic, homes are selling at rates not   place to live and the opportunity to
            see, Coronavirus thrives where it
                                               seen in years.  Which makes little sense   build equity and a place to live rent or
            cannot be seen. No matter how much
                                               considering so many are not working   mortgage free by the time they retire.
            the President denied its prevalence and
                                               and many who are working have seen
            severity assuring Americans that by June                             But here we are. During a pandemic,
                                               their hours reduced or, if in commission
            this killer will just sort of “go away”, it                          social distancing, protecting our
                                               sales, smaller paychecks because people
            hit swiftly. Confident he had done all                               mouth and nose to not infect others
                                               just are not spending, supposedly.
            that was necessary by blocking fl ights                               while unknowingly being infected
            into the U.S. from China, the President   One of the theories I have come up   ourselves, and hand washing and using
            emceed daily briefings assuring all of   with from my 35 years in the mortgage   hand sanitizer until our skin cracks.
            us that “we will beat Covid 19”. Four   business is that unemployment is a   Cautiously moving about in our world
            months later we are nearing 117,000   major factor that impacts the real   constantly aware that anyone we come
            lives lost to Covid19 nationwide.   estate market. I have observed that   in contact with could be the reason we
                                               there have been times when interest   have to go into solitary confi nement in
                                                                                 our own home, or maybe worse, end
                                                                                 up in a hospital; alone, without human
                                                                                 contact with our loved ones.
              “Your Mortgage Consultant Since 1985”
                                                                                 Adding to the trials and tribulations of
             Purchase or Refinance                                               adjusting to Pandemic Life comes the
                                                                                 heinous, senseless murder of George
                                                                                 Floyd by a rogue police officer. This
                                                                                 was not the first questionable killing
                                                                                 of an unarmed black man by police
                                                                                 officers. But this was different in that
             115 E Dover St. Ste 3 - Easton, MD                                  it was not over in a fl ash. There was no

             tolbert@baycapitalmortgage.com                 C. Tolbert Rowe,     incredulous second guessing of “what
             www.baycapitalmortgage.com        NMLS         Vice President/Lending  could he possibly have been thinking
                                               182844
                                                                                 during that instant?”
               410-819-3005  /  cell 410-310-3520
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