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After stock market plummets, coronavirus fears could also impact housing market

Video credit: 41 Action News
Published on February 29, 2020 - Duration: 02:07s

After stock market plummets, coronavirus fears could also impact housing market

Fear of COVID-19, commonly known as coronavirus, sent the stock market to its worst week in 12 years, and that could affect the housing market in Kansas City.

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After stock market plummets, coronavirus fears could also impact housing market

The first two parts of thattest"TODAY ENDED IN THEWORST WEEK ON WALLSTREET SINCE 2008.THE DOW JONES HAD ASMALLER LOSS THANYESTERDAY -- BUT THEMORE THAN 12-PERCENTDROP FOR THE WEEK WASONE OF THE WORSTWEEKS ON RECORD.ECONOMICS PROFESSORSARE WATCHING THEMARKETS CLOSELY.41 ACTION NEWSREPORTER NICK STARLINGTALKED TO AN EXPERTWHO SAYS THE MARKETSWILL GET WORSE BEFORETHEY GET BETTER.NICK:IF THE STOCK MARKETCONTINUES THISDOWNWARD TREND"ITCAN HAVE AN IMPACT ONNOT ONLY ON YOURWALLET"BUT IF YOUPLAN ON BUYING ORRENOVATING A HOUSE."A DISMAL WEEK ON WALLSTREET"AS THE CORONAVIRUSSHOWS NO SIGNS OFSLOWING DOWN.Dr. Pete Soule, PARK UNIVERSITYprofessor of EconomicsThe problem with the stockmarket is they"re alwayslooking for problems,they"re looking forproblems 6months to a yearfrom now.AND THE CORONAVIRUS ISTHAT PROBLEMACCORDING TO PARKUNIVERSITY PROFESSORPETE SOULE-PROVIDINGMORE VOLITILITY TO THESTOCK MAKET.Dr. Pete Soule, PARK UNIVERSITYprofessor of EconomicsI expect that the expectationswill cause a continuedsomewhat of a downturnwhether it"s a total crash Idon"t know but I do thinkthere will be a turn around inthe not too distant future.FOR THOSE NOT INVESTEDIN THE STOCKMARKET"THEDOWNTURN COULD IMPACTTHE HOUSING MARKETFOR THE GOOD AND BAD.ACCORDING TO FREDDIEMAC-BECAUSE OF THEUNREST IN THEMARKETS"MORTGAGERATES HAVE DROPPEDAGAIN"TO 3.45-PERCENTFOR A 30-YEAR FIXEDMORTGAGE RATE.THE LOW RATES AND HIGHCONSUMER CONFIDENCEDRIVES THE HOME SALESUPWARD.BUT IN TERMS OFINTEREST RATES"SOULEDOESN"T BELIEVETHOSE WILL CHANGE.Dr. Pete Soule, PARK UNIVERSITYprofessor of EconomicsThe federal reserve has beencontrolling the interest ratespretty tightly since 2008.IF YOU ARE IN THE MARKETTO BUY A NEWHOUSE"ORREMODELING"IT COULDCOST YOU MORE"ASSOME OF THE BUILDINGMATERIALS"ARE HALTEDIF THEY"RE COMINGFROM OVERSEAS.Dr. Pete Soule, PARK UNIVERSITYprofessor of EconomicsIt certainly could slowconstruction and it could slowoutputs in virtually anything.To what extent can we makethat up, I don"t knodepends on what that is.WHILE IT"S BEEN A BADWEEK ON Wall Street--PROFESSOR SOULEBELIEVES THE STOCKMARKET WILL GETWORSE"BEFORE IT GETSBETTER.REPORTING IN KANSASCITYNICK STARLING41

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