Good morning! Today is Tuesday, May 5. U.S. officials warn that relaxing social-distancing guidelines could create a surge of new coronavirus cases into August. New Mexico invoked a riot law to lockdown a city with one of the nation’s worst coronavirus outbreaks. United Airlines will cut its management ranks by 30 percent.
And in mortgage and housing news …
HOME SALES: Home sales will drop as much as 60 percent this spring, though home prices should not drop more than 3 percent due to the economic downturn caused by the coronavirus, according to a housing forecast released by Zillow.
FORBEARANCE DATA: The latest data released by the Mortgage Bankers Association shows 7.54 percent of mortgage borrowers – or 3.8 million – were in forbearance as of April 26.
HOME PRICES: The economy is shrinking, businesses are closing and jobs are disappearing due to the coronavirus pandemic. But in the housing market, prices keep chugging higher.
RECOVERY: Housing could be a leader in a post-pandemic economic recovery.
WORKFORCE HOUSING: Common, a company known for high-end communal living, is getting into the affordable housing business. The co-living firm is launching a brand geared toward workforce housing.
LENDING TRAPS: Two common traps that high-performing mortgage lenders avoid.
BALLOON PAYMENTS: What to do if you face balloon payments for your mortgage.
NEW NORMAL: The real estate industry could be permanently changed, even after the pandemic passes.
RISKY RESTART: Home-flipping giant Opendoor says it’s time to start buying again.
CONGRESSIONAL ACTION: It is only a matter of time before today’s liquidity problems at hotels, airlines, restaurants, retail stores and agricultural companies become financial losses that increased borrowing cannot solve. A call for Congress to do even more to avert an economic collapse.