Shelter Six:  Strong Economic Data Continues to Roll In

September 7, 2020 by · Leave a Comment 

The faster-than-expected economic rebound continues as last week’s economic data again came in stronger than anticipated.

In August, the economy added a massive 1.37M new jobs and Unemployment dropped from 10.2% to 8.4%.

Strong reports also came out for both the manufacturing and services industries, while weekly Jobless Claims declined to the lowest level since the pandemic started.

According to CoreLogic, home prices grew in July by the fastest rate in nearly two years, up 1.2% from June and 5.5% from last July.

Forbearance figures have flattened out and are now holding steady in the 7% range after peaking around 9% in June, and there has been no uptick after the Fed’s unemployment insurance benefits expired.

Temporary underwriting flexibilities on things such as verifications of employment and exterior-only appraisals have been extended again for several more months.

Rate Update

The 30-year Conforming rate continues to hover around and slightly under 3%. Expect more or the same as long as the Fed keeps buying bonds.

This Week

The Consumer Price Index, the most widely followed monthly inflation report, is due out on Friday.