Just over 40 million Americans are now on the unemployment line since the shutdown began in mid-March but there is a silver lining. Weekly Initial Jobless Claims rose 2.123 million versus the 2 million expected for the week ended May 23. However, continuing claims or the number of people who have already filed an initial claim plunged by nearly 4 million. This signals that people are already finding work or getting rehired. As expected, the second reading on Q1 GDP fell 5% while Durable Orders fell 17%.
Mortgage rates continued to inch lower in the latest survey while home purchase demand picks up steam. Freddie Mac reports that the 30-year fixed-rate mortgage fell to 3.15% with 0.8 in points and fees. It was the lowest rate in the 50-year survey history. Freddie Mac went on to say that refinance activity remains elevated and low mortgage rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year.
Pending Home Sales fell 21.8% in April from March marking the second straight monthly decline due to the pandemic outbreak, reports the National Association of REALTORS® (NAR). The NAR said that every major region experienced a drop in month-over-month contract activity and a decline in year-over-year pending home sales transactions. Lawrence Yun, NAR’s chief economist said, “In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”
The unemployment line grows longer. Mortgage rates at record lows. Pending Home Sales plunge.
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