Market News 4-24-2020
Mortgage Market Update
A recent Reuters poll shows a majority of economists believe we will see a “U-shaped” economic recovery, in which the economy will stabilize a while before climbing to previous levels. After the first round of paycheck protection funding disappeared quickly, Congress approved a new $484 billion relief package. It includes $310 billion for small businesses. 4.4 million workers joined the ranks of the unemployed last week, bringing total new jobless claims to 26.5 million in the last 5 weeks.
According to the FHFA, house price growth continued to accelerate through February, with the Housing Price Index posting a gain of 0.7%, which is a 5.7% increase year over year. Existing home sales dropped 8.5% in March as sellers took properties off the market. Expectations for upcoming months’ sales will be dictated by overall economic conditions. New home sales also fell in March, as the coronavirus outbreak battered the economy. The 15.4% drop was the largest in more than 6 years.