In This Issue…

Last Week in Review: The Unemployment Line is Growing

Forecast for the Week: Light Calendar and Fed Support

The Mortgage Market Guide View: Social Distancing Tips


Last Week in Review:

The Unemployment Line is Growing

The leading indicator on the health of the job market is the Initial Jobless Claims report, which essentially tells us the length of the unemployment line. And that line just grew.

Over the past four weeks, approximately 22 million people have filed for unemployment benefits, erasing nearly a decade worth of job creation.

Although the unemployment rate is likely 13% or higher, this is temporary in nature due to the coronavirus. We expect many people will be headed back to work relatively soon as the virus passes.

We won’t see the “pre-virus” 3.5% unemployment numbers for some time. However, the economy is expected to bounce back sharply as pockets of the country begin to reopen, putting people back to work.

There remains incredible opportunity during these uncertain times. Home loan rates are at all-time lows, affording many people the opportunity to refinance and restructure their personal debt.

With the Fed continuing to buy mortgage-backed securities, rates should hover near current levels for the foreseeable future.


Forecast for the Week:

Light Calendar and Fed Support

The upcoming week will continue to be impacted by the coronavirus headlines and the economic slowdown associated with the virus fallout.

First quarter earnings reports will continue to be released in the upcoming week with the numbers being impacted halfway through the quarter due to the coronavirus outbreak.

All eyes will continue to watch the ever-surging Weekly Initial Jobless Claims numbers after 22 million first-time claims were reported in the past four weeks. The economic calendar is on the light side.

The Federal Reserve will continue to purchase mortgage-backed securities in the open market to add liquidity and to stabilize the market, not necessarily to lower rates.

Reports to watch:

  • Housing data will come from Tuesday’s Existing Home Sales and Thursday’s New Home Sales.
  • Weekly Initial Jobless Claims will be released Thursday with Durable Orders and Consumer Sentiment.


The Mortgage Market Guide View:

Tips for Practicing Social Distancing During the Pandemic

Social distancing is a necessary strategy to maintain personal and societal well-being. Try these tips to practice safe social distancing while shopping, exercising, and interacting with others.

Shopping for food and other supplies is still a necessity for everyone. There are several options for doing so safely to minimize your contact with other shoppers. Consider using a delivery service to bring your groceries directly to your house. If you prefer to do your own shopping, try to wear a mask, as recommended by the CDC, and keep your distance from other shoppers.

Exercise is good for maintaining physical and mental well-being. With gyms and fitness studios closed, at-home workouts are the best way to stay fit and safe. Consider signing up for an online fitness membership, which will provide video workouts for you in your home. You can still safely go on walks or runs outdoors as long as you keep your distance from other people and avoid touching anything.

When interacting with people at the grocery store, on a walk, or when taking out the trash, be sure to practice safe social distancing procedures. Stay at least six feet away from other people at all times. When out of the house, consider wearing a mask or face covering. Cough or sneeze into your elbow rather than your hands. When paying for goods, use a credit or debit card rather than cash, and then immediately sanitize the card.

With consistent social distancing, we can all do our part to reduce the spread of the virus and keep ourselves and our families safe and healthy.

Sources: CDC, WHO


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We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.