Market Update 8/12/2020
August 11, 2020
There’s no doubt that the current state of the housing market and economy is being driven by the spread of Covid-19.
While the market remains extremely volatile, mortgage rates are continuing to hit historic lows. With these low rates comes higher home prices, as buyers are flooding the market looking to take advantage of the rate decrease.
Congress continued its deadlock last week over a new Covid-19 relief package for Americans financially impacted by the pandemic, while deadlines from the first relief package have come and gone. July 24th marked the expiration of the federal moratorium on evictions for Americans in certain housing types. August 1st saw the end of the $600 a week unemployment relief, as states across the U.S. continue to battle the surge of coronavirus cases and extended unemployment. The current unemployment rate in the U.S. fell to 10.2% in the month of July, down from 11.1% previously.
Both the proposed Heroes Act and HEALS Act include a second round of $1,200 stimulus checks. However, they vary both on total price tag ($3 trillion and $1 trillion, respectively) and duration of assistance. Over the weekend, President Trump signed four executive orders to bypass the deadlock in Congress. These orders will provide $400 a week in unemployment relief, maintain the suspension of student loan payments through the end of the year, postpone payroll taxes through the end of 2020, and a statement to officials to review the current status of evictions and foreclosures which may or may not provide further protections.
Not included in the president’s executive orders is the second round of stimulus checks. It is currently unclear if these executive orders will face legal challenge. We will continue to monitor current economic and market news and provide market updates to keep you informed.
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