Tuesday, June 30, 2020

Fannie Mae: Mortgage Serious Delinquency Rate Increased in May

Fannie Mae reported that the Single-Family Serious Delinquency increased to 0.89% in May, from 0.70% in April. The serious delinquency rate is up from 0.70% in May 2019. This is the highest serious delinquency rate since June 2018. These are mortgage loans that are "three monthly payments or more past due or in foreclosure". The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%. Click on graph for larger image By vintage , for loans made in 2004 or earlier (2% of portfolio), 3.09% are seriously delinquent (up from 2.64% in April). For loans made in 2005 through 2008 (3% of......(read more)
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Las Vegas Visitor Authority: "No Convention Attendance, Hotel Occupancy 2.8%" in May

From the Las Vegas Visitor Authority: May 2020 Las Vegas Visitor Statistics Reflecting the continued shutdown in place due to the COVID-19 pandemic, Las Vegas visitation in May (approx. 151k visitors) was a small fraction of typical levels. Like April, May saw no measurable convention attendance occurring in the destination. Occupancy for the month came in at 2.8% as most of the destination's 148k+ hotel rooms were temporarily closed during the shutdown, while the average day rates (ADR) among the open properties neared $61. Here is the data from the Las Vegas Convention and Visitors......(read more)
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Treasury Department, IRS will not extend Tax Day a second time

The IRS and Treasury Department have listened to your requests to push the tax deadline beyond July 15 and they are sticking to their guns. What you should know if you can't file on time....(read more)
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The wealthy are prepping for tax increases with these three strategies

Accountants and tax lawyers say they're seeing surge in calls and emails from wealthy clients asking about actions they can take now to avoid tax hikes in 2021 and beyond....(read more)
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"Chemical Activity Barometer Falls Slightly In June"

Note: This appears to be a leading indicator for industrial production. From the American Chemistry Council: Chemical Activity Barometer Falls Slightly In June The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), eased 0.3 percent in June on a three-month moving average (3MMA) basis following a 4.6 percent decline in May. On a year-over-year (Y/Y) basis, the barometer fell 12.0 percent in June. The unadjusted data show a 3.5 percent gain in June following a 2.2 percent gain in May and a 6.3 percent decline in April. The diffusion ......(read more)
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U.S. consumer confidence for June jumps to 98.1, vs 91 expected

U.S. consumer confidence for June jumps to 98.1, vs 91 expected<br/>https://ift.tt/2VzMM0Fread more)
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Case-Shiller: National House Price Index increased 4.7% year-over-year in April

S&P/Case-Shiller released the monthly Home Price Indices for April ("April" is a 3 month average of February, March and April prices). This release includes prices for 20 individual cities, two composite indices (for 10 cities and 20 cities) and the monthly National index. From S&P: Annual Home Price Gains Remained Steady In April According To S&P CoreLogic Case-Shiller Index The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 4.7% annual gain in April, up from 4.6% in the previous month. The......(read more)
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The coronavirus is expected to have cost 400 million jobs in the second quarter, UN labor agency estimates

The coronavirus pandemic is expected to have resulted in a 14% drop in global working hours in the second quarter of 2020, the International Labour Organization has said....(read more)
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PPP loans are ending. Here's where small businesses can turn now

The Paycheck Protection Program will stop approving new applications after June 30. Other relief options may be limited for struggling businesses....(read more)
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FHFA is providing tenant protections to help renters in multifamily properties stay in their homes

FHFA is providing tenant protections to help renters in multifamily properties stay in their homes and extending a program to support multifamily property owners during the coronavirus national emergency https://ift.tt/2ZlmSP7 (Feed generated with FetchRSS )...(read more)
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Treasury yields retreat as Fed's Powell stresses uncertainty and coronavirus cases surge

U.S. government debt prices were higher Tuesday morning after Federal Reserve Chairman Jerome Powell emphasized the prolonged uncertainty facing the U.S. economy, as coronavirus cases soar in numerous states....(read more)
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Monday, June 29, 2020

MBA Survey: "Share of Mortgage Loans in Forbearance Decreases Slightly to 8.47%" of Portfolio Volume

Note: To put these numbers in perspective, the MBA notes "For the week of March 2, only 0.25% of all loans were in forbearance." From the MBA: Share of Mortgage Loans in Forbearance Decreases Slightly to 8.47% The Mortgage Bankers Association's (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 1 basis point from 8.48% of servicers' portfolio volume in the prior week to 8.47% as of June 21, 2020. According to MBA's estimate, 4.2 million homeowners are in forbearance plan s. ... "The overall share of loans in forbearance......(read more)
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Powell says recovery path is 'extraordinarily uncertain' amid efforts to control virus

Powell says recovery path is 'extraordinarily uncertain' amid efforts to control virus<br/>https://ift.tt/2VpoqGPread more)
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Millions of American Homes at Greater Flood Risk Than Government Estimates, New Study Says

Nearly six million properties across the U.S. have a substantial risk of flooding that isn't disclosed by federal flood maps, according to a nonprofit research firm. The post Millions of American Homes at Greater Flood Risk Than Government Estimates, New Study Says appeared first on Real Estate News & Insights | realtor.com® ....(read more)
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Update: Framing Lumber Future Prices Up Year-over-year

Here is another monthly update on framing lumber prices.   Lumber prices declined sharply from the record highs in early 2018, and then increased until the COVID-19 crisis. This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through June 26, 2020 ( via NAHB ), and 2) CME framing futures. Click on graph for larger image in graph gallery. Right now Random Lengths prices are up 36% from a year ago, and CME futures are up 14% year-over-year. There is a seasonal pattern for lumber prices, and usually prices will increase in the Spring, and peak around......(read more)
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More states reverse or slow reopening plans as coronavirus cases climb

The number of new Covid-19 cases per day in the U.S. jumped 42% over the past week to an average of about 38,200 on Sunday, based on a seven-day moving average....(read more)
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Nearly half the U.S. population is without a job, showing how far the labor recovery has to go

"To get the employment-to-population ratio back to where it was at its peak in 2000 we need to create 30 million jobs," said Torsten Slok, Deutsche Bank's chief economist....(read more)
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Supreme Court leaves CFPB intact but backs president's ability to fire director

Supreme Court leaves CFPB intact but backs president's ability to fire director<br/>https://ift.tt/3dKLNAKread more)
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Six High Frequency Indicators for a Recovery

These indicators are mostly for travel and entertainment - some of the sectors that will probably recover very slowly. The TSA is providing daily travel numbers . Click on graph for larger image. This data shows the daily total traveler throughput from the TSA for 2019 (Blue) and 2020 (Red). On June 28th there were 633,810 travelers compared to 2,632,030 a year ago. That is a decline of 76%. There has been a slow steady increase from the bottom, but air travel is still down significantly. The second graph shows the year-over-year change in diners as tabulated by OpenTable for the US and......(read more)
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ECB could boost bond buying by another trillion euros, economist projects

The European Central Bank (ECB) could expand its bond-buying program by a further 1 trillion euros ($1.12 trillion) over the next two to three years as inflation takes center stage, according to Berenberg European Economist Florian Hense....(read more)
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Additional Disaster Relief

It is time for additional disaster relief. The key proposals will likely include: 1. Extension of Federal Pandemic Unemployment Compensation (FPUC). The current amount is $600 per week for those receiving unemployment benefits, in addition to the state benefits. This expires at the end of July.   This might be reduced to $400 per week (or a percentage of state benefits). This will probably be extended through the election in November (Ideally the extension period would not be calendar based, but determined by the state unemployment rate).   This is critical, or we will see a ......(read more)
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Friday, June 26, 2020

Freddie Mac: Mortgage Serious Delinquency Rate increased in May, Highest in 2 Years

Freddie Mac reported that the Single-Family serious delinquency rate in May was 0.81%, up from 0.64% in April. Freddie's rate is down from 0.63% in May 2019. This is the highest serious delinquency rate since June 2018. Freddie's serious delinquency rate peaked in February 2010 at 4.20%. These are mortgage loans that are "three monthly payments or more past due or in foreclosure". Click on graph for larger image With COVID-19, this rate will increase significantly in June and July (it takes time since these are mortgages three months or more past due). I believe mortgages in forbearance will......(read more)
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Coronavirus contact tracing is 'not going well,' Dr. Fauci says, U.S. still needs more testing

Dr. Anthony Fauci said he personally is an advocate of "flooding the system with testing, so you really get a good handle about what is going on in the community."...(read more)
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While Not Quite McMansions, Larger Homes in the U.S. Are Making a Comeback

The trend toward ‘less is more' has been turned on its head by months spent under lockdown, making it an opportune time for sellers looking to unload estates with extra acreage. The post While Not Quite McMansions, Larger Homes in the U.S. Are Making a Comeback appeared first on Real Estate News & Insights | realtor.com® ....(read more)
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Florida Smashes Coronavirus Case Record: Nearly 9,000 Positive Cases on Thursday

Florida suspends consumption of alcohol at bars as the state's daily coronavirus count reaches nearly 9,000 - smashing the earlier record set on Wednesday of 5,000....(read more)
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9 Tips for Selling Your Home During Coronavirus

The coronavirus has affected so many aspects of our lives – from how we work to how we exercise, communicate, and so much more. It has also affected the housing market and how we now buy and sell homes. If you're thinking about listing your home you may be wondering what you can do to … 9 Tips for Selling Your Home During Coronavirus Read More » The post 9 Tips for Selling Your Home During Coronavirus appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More ....(read more)
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The extra $600 unemployment benefits will end before July 31

For the tens of million of Americans receiving unemployment benefits, the extra $600 boost will run out sooner than expected....(read more)
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Fragile economic recovery faces first big test with June jobs report in the week ahead

The second half of 2020 is here, and now it's up to the economy to prove that the stock market was right about a sharp comeback in growth....(read more)
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Prices of Affordable Homes Have Jumped 5.5% During the Pandemic

Prices of the most affordable third of homes in the U.S. climbed 5.5% year over year during the 12 weeks ending May 31, while prices of the most expensive third of homes increased just 2%. The post Prices of Affordable Homes Have Jumped 5.5% During the Pandemic appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More ....(read more)
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Personal Income decreased 4.2% in May, Spending increased 8.2%

The BEA released the Personal Income and Outlays report for May: Personal income decreased $874.2 billion (4.2 percent) in May according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) decreased $911.1 billion (4.9 percent) and personal consumption expenditures (PCE) increased $994.5 billion (8.2 percent). Real DPI decreased 5.0 percent in May and Real PCE increased 8.1 percent (tables 5 and 7). The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent. The May PCE price index increased 0.5......(read more)
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U.S. Treasury yields edge higher ahead of economic data

U.S. government debt prices were lower on Friday morning as investors tracked new infection rates of Covid-19....(read more)
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ECB's Lagarde says we've probably passed the lowest point of the crisis

ECB's Lagarde says we've probably passed the lowest point of the crisis<br/>https://ift.tt/31iaGkLread more)
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Thursday, June 25, 2020

Economic Outlook: The Gathering Storm

On March 31st, I wrote : This is a healthcare crisis, and the economic outlook is based on presumptions about the course of the pandemic. I've been updating my outlook monthly , and turning more and more pessimistic due to the poor US government response to the pandemic. The Federal government's response has not been helpful, and in many ways, it has been counterproductive. The Vice President of the US, Mike Pence, wrote just last week in the WSJ: There Isn't a Coronavirus ‘Second Wave' . The data has already proven Pence wrong. Fortunately, some state and local governments have stepped up to ......(read more)
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A Record 27% of Homebuyers Are Looking to Relocate, as Pandemic Accelerates Trend Toward Affordable, Less Dense Areas

The coronavirus pandemic may be accelerating migration patterns that were already in place: Movement away from high-priced coastal cities to affordable inland areas like Phoenix, Sacramento and Las Vegas. The post A Record 27% of Homebuyers Are Looking to Relocate, as Pandemic Accelerates Trend Toward Affordable, Less Dense Areas appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More ....(read more)
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The market is 'a little ahead of itself' amid 'real tragedies' for small businesses, Larry Fink says

"What's remarkable is there are more human beings being affected by the disease today than on March 21 when markets were 40% lower," Fink told CNBC....(read more)
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Mortgage Rates Keep Falling to Record Lows—So Is Now a Good Time to Refinance?

Homeowners stand to save money by refinancing, but some factors may make getting a new loan less worthwhile. The post Mortgage Rates Keep Falling to Record Lows-So Is Now a Good Time to Refinance? appeared first on Real Estate News & Insights | realtor.com® ....(read more)
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Kansas City Fed: "Tenth District Manufacturing Activity Grew Slightly " in June

From the Kansas City Fed: Tenth District Manufacturing Activity Grew Slightly The Federal Reserve Bank of Kansas City released the June Manufacturing Survey today. According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City, the survey revealed that Tenth District manufacturing activity grew slightly after sharply decreasing for three straight months. Activity still remained well below year-ago levels, while expectations for future activity rebounded moderately. " Regional factory activity expanded just slightly in June compared with a month ago, but......(read more)
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Hotels: Occupancy Rate Declined 41.8% Year-over-year

From HotelNewsNow.com: STR: US hotel results for week ending 20 June U.S. hotel performance data for the week ending 20 June showed another small rise from previous weeks and less severe year-over-year declines, according to STR. 14-20 June 2020 (percentage change from comparable week in 2019): • Occupancy: 43.9% (-41.8%) • Average daily rate (ADR): US$92.20 (-31.7%) • Revenue per available room (RevPAR): US$40.48 (-60.3%) "Occupancy was up another couple percentage points from last week, marking the 10th consecutive week of such an increase," said Jan Freitag, STR's senior VP of lodging......(read more)
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U.S. weekly jobless claims total 1.48 million, vs 1.35 million estimate

Jobless claims totaled 1.48 million last week as unemployment related to the coronavirus pandemic remained stubbornly high. Economists surveyed by Dow Jones had been expecting 1.35 million claims....(read more)
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Many American expats are still waiting for their $1,200 stimulus checks

Americans who live in other countries are among those who still have not received their coronavirus stimulus checks. Because their payments are mostly in the form of paper checks that must be sent internationally, they may face a longer wait than most....(read more)
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Wednesday, June 24, 2020

California reports more than 7,000 coronavirus cases, biggest daily jump so far

The department reported an additional 7,149 cases since Tuesday, a 69% increase in two days, bringing the state's total to 190,222 cases, according to the state's health department....(read more)
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Treasury may consider delaying Tax Day beyond July 15, Mnuchin says

A second delay for Tax Day isn't entirely out of the picture. Treasury Secretary Steven Mnuchin told Bloomberg on Tuesday that a delay beyond July 15 is "something we may consider."...(read more)
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DOT: Vehicle Miles Driven decreased 40% year-over-year in April

The Department of Transportation (DOT) reported : Travel on all roads and streets changed by -39.8% (-112.0 billion vehicle miles) for April 2020 as compared with April 2019. Travel for the month is estimated to be 169.6 billion vehicle miles. The seasonally adjusted vehicle miles traveled for April 2020 is 160.9 billion miles, a -41.2% (-112.9 billion vehicle miles) decline from April 2019. It also represents -27.2% decline (-60 billion vehicle miles) compared with March 2020. Cumulative Travel for 2020 changed by -14.8% (-152.3 billion vehicle miles). The cumulative estimate for the year is ......(read more)
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Census: Household Pulse Survey shows 31% of Households Expect Loss in Income over Next 4 Weeks

Note: The question on lost income is always since March 13, 2020 - so this percentage will not decline. From the Census Bureau: Measuring Household Experiences during the Coronavirus (COVID-19) Pandemic The U.S. Census Bureau, in collaboration with five federal agencies, is in a unique position to produce data on the social and economic effects of COVID-19 on American households. The Household Pulse Survey is designed to deploy quickly and efficiently, collecting data to measure household experiences during the Coronavirus (COVID-19) pandemic. Data will be disseminated in near real-time to......(read more)
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IMF slashes its forecasts for the global economy and warns of soaring debt levels

The IMF slashed its economic forecasts once again and warned that public finances will deteriorate significantly....(read more)
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AIA: "Architecture billings downward trajectory moderates"

Note: This index is a leading indicator primarily for new Commercial Real Estate (CRE) investment. From the AIA: Architecture billings downward trajectory moderates Demand for design services in May saw few signs of rebounding following a record drop in billings the month prior, according to a new report today from The American Institute of Architects (AIA). AIA's Architecture Billings Index (ABI) score for May was 32.0 compared to 29.5 in April, but still represents a significant decrease in services provided by U.S. architecture firms (any number below 50 indicates a decrease in billings).......(read more)
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Share of Builders Cutting Home Prices Drops from 22% to 15%

As lockdown orders began to ease in May and June 2020, housing data rebounded quickly, providing evidence that this industry is positioned to lead the economy forward. Single-family permits rose almost 12% in May, mortgage applications are at their highest level since January 2020, and builder sentiment, measured by the NAHB/Wells Fargo Housing Market Index (HMI), jumped 21 points in... Read More ›...(read more)
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FHFA Releases 1st Quarter Foreclosure Prevention and Refinance Report for Fannie/Freddie

FHFA Releases 1st Quarter Foreclosure Prevention and Refinance Report for @FannieMae and @FreddieMac https://ift.tt/3hYTsPu (Feed generated with FetchRSS )...(read more)
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Tuesday, June 23, 2020

Housing market should 'cool off' later in year, Moody's economist Zandi says

Moody's Analytics chief economist Mark Zandi discussed the housing market on CNBC's "Power Lunch."...(read more)
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There's a wave of selling estimated to be in the billions that's about to hit the stock market

With the stock market's sharp gains this quarter, traders are expecting more volatility as investors take gains from stocks and move them into bonds....(read more)
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