Just over 3.4 million borrowers, representing 6.4% of all mortgages outstanding, are now in forbearance plans. That’s an increase of 477,000 loans in just one week, or a nearly 9% jump, according to Black Knight, a mortgage data and analytics firm, which is running weekly tallies. These forbearances represent $754 billion in unpaid principal and include 5.6% of all Fannie Mae and Freddie Mac loans and 8.9% of all FHA/VA loans. Source: https://www.cnbc.com/2020/04/24/mortgage-bailout-balloons-by-half-a-million-more-loans-in-one-week.html
How do you think this will play out?
52% of American renters say they are confident they will be able to pay full rent in May, compared to 69% who said they could in April, according to a new survey, but those numbers could change as more federal stimulus checks hit bank accounts.
63% of renters said they have suffered income losses related to Covid-19.
A significant percentage of renters plan to move within six months.
Wells Fargo, one of the largest home lenders in the U.S., said it it stepping away from the market for home equity lines of credit because of uncertainty tied to the coronavirus pandemic.
“Wells Fargo Home Lending will temporarily stop accepting applications for all new home equity lines of credit (HELOCs) after April 30,” the bank said in a statement.
During tough economic times, HELOCs are riskier products for banks because in a foreclosure, the lender who made the primary mortgage is first in line to get paid in a recovery.
There is a lot of disinformation on the net claiming Covid-19 will only be a minor setback and the job losses are temporary. These so economic "analysts" are basing their opinion not based on facts. Social distancing and half lock down cities will become the norm until a vaccine is out. Which means nothing is returning to normal until mid next year the earliest.
In that time frame we will continue to see a huge job loss not just in retail workers, but small business owners. Small businesses make up 44% of the US economy.
The Fed has come out and stated the Economy will not be back to pre-paramedic levels until 2022. The fed is rarely the bearer of bad news, which means there is a possibility it may take longer for a full economic recovery.
How does this affect the real estate prices? It's hard to say because The Fed has infinite capital and their decisions will dictate the real estate market. What I do know is the federal reserve wants inflation to keep the GDP growth which would include the real estate market.
@Marra McDonald Johnson
Making Home affordable’ s Unemployment Program (UP) can help keep your job seekers in their homes. https://www.makinghomeaffordable.gov/pages/default.aspx
An Official Program of the U.S. Department of the Treasury & the U.S. Department of Housing and Urban Development
Despite steady job growth, Washington’s unemployment rate remains at 5.8 percent U.S. unemployment increases slightly to 5 percentBy admin
Despite steady job growth, Washington’s unemployment rate remains at 5.8 percent
U.S. unemployment increases slightly to 5 percent
OLYMPIA – While Washington added 9,000 new jobs from February 2016 to March 2016, the state’s unemployment rate held steady at 5.8 percent, according to the state’s Employment Security Department (ESD). The state released the seasonally adjusted, preliminary jobs estimates from the federal Bureau of Labor Statistics as part of its March Monthly Employment Report.
“Washington continues to enjoy steady job growth but surges in the labor market are impacting the state’s unemployment rate,” said Paul Turek, Washington’s state labor economist. “The state added nearly 100,000 new jobs since last year, but at the same time, 92,500 more people entered the labor market to compete for those jobs—and that’s been keeping the unemployment rate from declining ”
The U.S. unemployment rate increased slightly from 4.9 percent in February to 5 percent in March.
Unemployment in the Seattle/Bellevue/Everett area dropped from 5 percent in February 2016 to a preliminary 4.9 percent in March 2016.
ESD paid unemployment insurance benefits to 69,916 people statewide in March.
Labor force continues to grow in Puget Sound and across Washington
The state’s labor force increased by more than 13,000 to nearly 3.62 million from February to March. The labor force is the total number of people, both employed and unemployed, over age 16. In the Seattle/Bellevue/Everett region, the labor force grew by 7,300 to nearly 1.61 million over the same period.
Washington enjoys job growth in all but two sectors in March
This month’s report shows the greatest job growth in professional & business services with 2,200 new jobs from February to March.
Financial activities saw no growth, and education & health services lost 1,600 jobs.
Year-over-year growth remains strong with continued gains in public and private sectors
Washington added 98,200 new jobs from March 2015 to March 2016, not seasonally adjusted. The private sector grew by 87,600 jobs and the public sector added 10,600, according to ESD’s Monthly Employment Report.
From March 2015 to March 2016, 11 of 13 major industries saw growth while the number of jobs in the mining and logging industries dropped by 600 and manufacturing lost 2,300 jobs.
The top four industry sectors with the largest employment gains from March 2015 to March 2016, not seasonally adjusted, were:
· Professional & business services with 17,100 new jobs;
· Retail trade with 14,900 new jobs;
· Leisure & hospitality with 14,300 new jobs; and
· Construction with 10,900 new jobs.
· Monthly employment report
· Labor market information website
· State and local trends and projections
· Three-month comparisons, county-to-county (Excel spreadsheet) ~ click “Current estimates” under “Not seasonally adjusted” on the right
· Historical data (Excel spreadsheet) ~ click “Historical estimates” under “Seasonally adjusted” on the right
· Employment Security website
The General Theory of Employment, Interest, and Money - Dec 13, 1935
J. M. Keynes 1939 (pre-war) radio address on the beginning of The Grand Experiment...
The Economic Consequences of the Peace
"[...] We have been moved already beyond endurance, and need rest. Never in the lifetime of men now living has the universal element in the soul of man burnt so dimly."
John Maynard Keynes, Nov 1919.
John Maynard Keynes Explains Cure to High Unemployment in His Own Voice. (1939)
OpenCulture, Jun 21, 2012
On May 23, 1939, just a day after signing the "Pact of Steel", Hitler held a speech before his top military commanders, starting by noting Danzig as a means to engage Poland in a war to gain Lebensraum ("living space") for the German people; fixing Germany's economy would be "impossible without invading other countries or attacking other people's possessions."
Check out the official numbers:
The U6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but also counts "marginally attached workers and those working part-time for economic reasons." Note that some of these part-time workers counted as employed by U-3 could be working as little as an hour a week. And the "marginally attached workers" include those who have gotten discouraged and stopped looking, but still want to work. The age considered for this calculation is 16 years and over
The unemployment numbers are out for February of 2016. There were 242,000 jobs added and the National Unemployment Rate decreased to 4.9%. In 1953, post 2 recessions, the National Unemployment Rate fell to an all time low of 2.5% whereas, OR and WA fell to 4.7% and 4.4% respectively.
As of December 2015 the unemployment rate for WA is 5.8% and OR is 5.5%. With this being said, employers are finding it more and more difficult to obtain and retain talented employees due to rising salary's and enticing offers from other organizations.