Market News 5-15-2020
Mortgage Market Update
Consumer prices saw their largest drop ever in April, as the economy reeled from restrictions imposed to control the coronavirus. The CPI excluding food and energy fell 0.4%. Producer prices also tumbled in April, the largest annual decline since 2015. The data could bolster some economists’ predictions for a brief period of deflation to come. Initial jobless claims came in last week at 2.981 million. The number is down from 3.176 million the week before, the 6th straight weekly drop.
The number of loans in forbearance has continued to grow, reaching more than 4 million between the GSEs and FHA/VA/USDA. This doesn’t include jumbo or other privately held loan types. Homebuilders are offering more discounts and free upgrades to attract buyers. Builders are hoping to move more inventory by sweetening the pot. Despite the COVID pandemic and huge unemployment numbers, tenants are keeping up with their rent. More than 80% of renters nationally made a full or partial payment for the month of April.