Greetings, I hope you and your loved ones continue to stay safe and healthy. The coronavirus continues to dominate every aspect of our lives, both here in the United States and across the globe, and even though it can be hard to stay up to date with the latest changes, it is my goal to keep you informed.
Here are a few updates about how COVID-19 continues to impact the economy and the housing market:
- According to MarketWatch, requests for mortgage forbearance increased 1,896% nationwide from March 16 to March 30. The CARES Act requires servicers to provide forbearance to homeowners with federally-backed mortgages, while all other homeowners may seek forbearance at the discretion of their servicer. Experts advise all homeowners to know the difference between deferment, forbearance, and forgiveness.
- Millennials, the largest demographic of U.S. homebuyers, will have now faced back-to-back economic crises since their entry into the workforce; how will their response shape the housing market for years to come?
- Though Realtor.com’s Director of Economic Research Javier Vivas cautioned it will take another month to truly understand the effects of COVID-19 on supply and demand, the site’s monthly list of top-performing markets for March highlights the potential for an increase in the popularity of less-dense cities like Colorado Springs, Fort Wayne, and Spokane as the result of the health crisis.
- Federal Reserve Vice Chairman Richard Clarida offers assurance that the central bank “has the tools [it needs]” to keep the U.S. out of a deflationary trap. “We’re going to keep rates where they are, which is basically very close to zero, until the economy is on track to achieve maximum employment and price stability,” he said. Learn more about the indirect relationship between Fed funds rates and mortgage interest rates here.
- CDC reports 70 coronavirus vaccinations are under development across the globe, and three have entered human trials.
- Saudi Arabia and Russia struck a deal with other oil-producing countries to dramatically slash production in an effort to rectify the oil market, though analysts agree the impact of such agreements can only go so far in combating the global lack of demand.
As best it can, the real estate industry will continue to operate during these trying times. Agents the nation over are taking precautions to keep themselves and their clients safe as they navigate transactions, interacting with clients remotely when possible, limiting the number of people who come to a home’s showings, and/or leveraging virtual home tours to replace in-person contact as much as possible.
If you have questions for me or if I can assist you in any way, don’t hesitate to reach out via phone or email today. I’m here to help.
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