BREAKING NEWS: COVID-19 Pandemic Economic Update And Housing Market Changes
- We are available seven days a week even during times like these to help our clients with their mortgage needs
- In this blog we will give a brief update to the mortgage industry and how it has been affected by the COVID-19 pandemic
In this breaking news article, we will discuss and cover COVID-19 Pandemic Economic Update And Housing Market Changes.
COVID-19 Pandemic Economic Update And Latest News
A few updates surrounding coronavirus:
As we continue to see unemployment claims rise, the current total is estimated to be over 35.6 million Americans filing jobless claims since the beginning of the outbreak.
- This is a record number, something we have not seen since the great depression of 1929
- America has been through a lot in a short history and this is another chapter for our story
- The American people are determined, and we will come out of this stronger than ever
- Our stock market was at a record high with unemployment near record lows before this outbreak
- There is not a doubt in my mind that we will be back there in the near future
- Our markets have been crippled before with tragedy events such as 9/11 and the economic downturn of 2008
- And we have bounced back
In my opinion, this one may take a little longer to bounce back from but we will get there.
COVID-19 Pandemic Economic Update On Reopening
Individual states are now able to make their own decisions based on their current situation.
- President Donald Trump made it more than clear that individual states can re-open their economies in a safe manner
- However, there are certain states like New Jersey, New York, and Connecticut that may not be open for quite some time
Other states such as Arizona have already made announcements that they will be open for sporting events without fans.
Reopened States Are Thriving
Florida and Texas are already allowing residents to visit restaurants at 50% capacity
- The key is to safely open economies and get the American people back to work
- The cure cannot be worse than the virus
- As worldwide research for a vaccine is conducted around the clock, we must find a way to get Americans back to work
- It is still unclear how the states with loosened restrictions will bounce back
- We hope there is not an uptick in COVID-19 coronavirus cases (OR DEATHS)
- It is still unclear when Mass Gatherings will be allowed again
- States such as Missouri are allowing concerts at a low spaced-out capacity
Will a live event be the same without a full crowd? The world is changing at a rapid pace.
Reopening Plans On All States In The Nation
Since restrictions are now on a state-by-state basis, the real estate sector is affected differently throughout our nation. And states such as Colorado, real estate is deemed essential business.
- Colorado entered what is called SAFER AT HOME, the next phase in reopening the economy
- In this space, real estate professionals are allowed to continue working
- They are strongly encouraged 2 do all paperwork electronically with contact list payment options
- Real estate professionals are strongly encouraged to wear face coverings or masks
- In-person real estate showings are now allowed
- However there may not be with more than 10 people on the property
- Open houses are not allowed because of the possibility of more than 10 people
- No food or beverages may be offered at any house showing
- It is important to maintain 6 ft of social distancing for all parties included in the house showing
- These changes are implemented to stop the spread of the covid-19 coronavirus outbreak
- Even during these times, people still need to buy, sell, and refinance homes
- If you are completing a refinance transaction, a drive-up appraisal is recommended
Please read the APPRAISAL PROCESS DURING PANDEMIC blog for more information.
COVID-19 Pandemic Economic Update On Forbearance Numbers
According to housing wire, it is estimated that more than 7.5% of home loans are currently in forbearance under the CARES ACT.
- This is in the outstanding number. Just goes to show how many people are currently out of work and unable to pay their mortgage
- This number can send a ripple effect through the mortgage industry
- Mortgage forbearance has been offered in the past at a much smaller scale
- In the past, during a natural disaster such as a hurricane, those residents will get a temporary forbearance on mortgage payments
- This is now nationwide and even including Puerto Rico, Hawaii, and Alaska
- We are still learning the rules after forbearance
- Mortgage guidelines are changing at a rapid Pace
- As of now, it looks like if you enter into mortgage forbearance, you must wait 12 months before you’re eligible to refinance your property
- Similar to modifying your mortgage loan
Please click here for more information on information on MORTGAGE MODIFICATION.
Mortgage Programs During Coronavirus Pandemic
It may be longer than we think before the mortgage industry is back to normal.
- However we are seeing some indicators such as the re-emergence of NON-QM mortgage lending products as well as a stabilization surrounding interest rates
- These small indicators are a good sign for the future
- The majority of lending institutions have raised their credit score requirements on all mortgage lending putting many at a disadvantage
- The good news is, Gustan Cho Associates have not changed their lending criteria
- We are still able to fund mortgages with credit scores as low as 500
- We are experts in mortgage lending are have numerous investors who have not raised credit requirements
After speaking to friends in the industry, many lenders now require a 640 (and some 660) to obtain a mortgage loan. Without any clear data on when they will loosen restrictions.
Qualifying For A Mortgage With A Lender With No Overlays During Pandemic
As you can see from our informational blogs, we are experts in mortgage lending. We do not have additional lender overlays to get in the way, so we are able to fund more mortgage loans than most companies. Even if you have been turned down in the past, we encourage you to call us or a pre-approval. Our licensed loan officers’ pride themselves on being up to date on mortgage guidelines. If you have general mortgage questions, or do not feel your lender is knowledgeable, please call Mike Gracz on 630-659-7644 today. You may also email [email protected]