While we’ve spent the last few months acclimating to the new normal, there have been several updates regarding COVID-19’s effect on the housing market. Congress is in talks to possibly send more aid to Americans through a second stimulus check, unemployment rates are falling, and much more.
Hubzu’s Signature Seller provides an alternative route for homeowners facing forbearance
Homeowners should understand all their options and the possible repercussions of entering mortgage forbearance before moving forward. The reality is mortgage forbearance can lead to less equity and damaged credit, stopping them from qualifying for another mortgage in the future. Instead of possibly facing these repercussions, homeowners should consider selling their home through programs like Hubzu’s Signature Seller Auctions. This avenue can help you save money, keep more of your equity, minimize the negative effects on your credit and can even allow you to stay in your home for a period of time after the sale. If you’re considering entering mortgage forbearance or are already in forbearance, take the time to read up on the benefits of Signature Seller.
Unemployment rate falls for the third straight month, now sits at 10.2%
July provided some good news for the American economy as the unemployment rate fell to 10.2%, showing a significant drop from a peak of 14.7% back in April. Not only does this show signs of recovery from the initial economic impact of COVID-19, but it also provides some evidence as to why consumer confidence has been increasing. With more Americans regaining their confidence because they’re receiving a consistent paycheck again, the housing market could also experience an upswing with more buyers entering the market.
U.S. pending home sales rose by 5.9% in July
Another piece of good news is that U.S. pending home sales rose by 5.9% in July, which is the third consecutive month of positive gains and is partly attributed to low mortgage rates and strong demand from customers. There was also a strong level of pent-up demand from buyers that were unable to close on deals during the spring months due to COVID-19. Once reopening began in certain states and real estate operations picked back up, these buyers couldn’t wait to purchase homes.
Lawrence Yun, Chief Economist at the National Association of Realtors, had this to say regarding the surge in pending home sales, “We are witnessing a true V-shaped sales recovery as home buyers continue their strong return to the housing market. Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
All four regions of the country have experienced month-over-month and year-over-year gains in pending home sales, and this surge is expected to continue as more states reopen.
Congress may pass a second economic stimulus package
Congress has been in talks to pass an additional economic stimulus package that could lead to another check being sent out to citizens. Leaders on both sides have shown interest in the second package and checks could be issued by the IRS within a week of the bill being passed. If the package is passed and checks are sent to Americans once again, consumer confidence can grow even stronger.
FHFA extends foreclosure moratorium for a third time, new deadline is December 31st
The Federal Housing Finance Agency has extended its moratorium on foreclosures for borrowers with mortgages backed by Fannie Mae and Freddie Mac to December 31st. The agency states that they’re monitoring the COVID-19 situation as it unfolds and that changes may occur over time. The Foreclosure Moratorium only applies to enterprise-backed, single-family mortgages.
The housing market can likely look forward to more buyers purchasing homes as they anticipate the reopening of states all across the country. And with unemployment rates falling as more Americans get back to work, people will be in a better position to invest in property.
For additional resources to help you navigate the real estate market, visit our COVID-19 resource hub by clicking here.