Market News 4-2-2020
Mortgage Market Update
Workplace disruptions caused by the COVID-19 pandemic are expected to wipe out labor equivalent to the effort of 195 million full-time workers. That’s 6.7% of hours clocked worldwide. Jobless claims last week topped 6 million for the 2nd straight week, totaling more than 15 million in the last 3 weeks. Almost 95% of Americans are now under stay-at-home orders. The Fed announced another series of sweeping steps to provide as much as $2.3 trillion in additional aid, including starting programs to help small and mid-sized businesses.
Following a 1,270% increase between the weeks of March 2 and March 16, latest figures show an 1,896% increase in forbearance requests over the most recent 2-week period. Some reports show nearly one third of apartment renters didn’t pay April rent the first week of April. Many tenants will be temporarily protected from eviction though. Refinance applications dropped 19% last week but were up 144% over the previous year. Purchase applications were down 12% for the week and 33% year over year.