Reporters discuss bombshell story on Better.com’s CEO

An exclusive interview with the Forbes reporters who recently wrote a bombshell article about Better.com CEO Vishal Garg’s controversial workplace culture.

Now is the time to double down on diversity and inclusion efforts

Quicken Loans Mortgage Services is proud to partner with a diverse set of brokers, which broadens the pool of potential clients they serve together.

How to Accelerate Closings in 2021

In this webinar, we’ll provide you with actionable insights to help you accelerate your closing process from point-of-sale through post-closing.

Why are sellers sitting on the housing market sidelines?

Why aren’t more homeowners selling in this hot housing market? According to new research from Zillow, a number of factors are at play.

CoronavirusPolitics & Money

Jobless claims topped 5 million last week

The only alternative to economic shutdown was “deaths in the street,” FHN’s Low says

Jobless claims totaled 5.25 million last week, the second consecutive decline since the pace hit an eye-popping 6.87 million in the last week of March, according to a Labor Department report on Thursday.

That brings the total jobs lost in the last four weeks of the COVID-19 pandemic to 22 million after businesses were forced to close by states issuing stay-at-home orders that only allowed a restricted amount of economic activity.

While the amount of jobless claims is stunning, it’s the result of measures that were necessary to prevent deaths from COVID-19 from overwhelming hospitals, said Chris Low, chief economist of FHN Financial in New York.

“We were left with no other option because without the lockdowns and the social distancing, hospitals would have been overrun,” said Low. “We’re talking about preventing unnecessary deaths, literally in the streets because the health system would have broken down, and the only way to do that was to close the economy down.”

Based on the weekly claims numbers, the unemployment rate for April will easily surpass the all-time high of 11% in November 1982, according to a report by Wells Fargo economists.

“The 5.2 million claims filed last week suggests the unemployment rate in April, which will be released on May 8, should exceed 15%,” Wells Fargo said. “The peak of new claims appears to have passed, meaning focus
will now shift to the duration of unemployment.”

The spike in unemployment claims show additional help is needed to support Americans while the economy is on hold, according to Mike Fratantoni, chief economist of the Mortgage Bankers Association.

Congress already has passed three bills aimed at coronavirus relief, including the $2.2 trillion CARES Act passed three weeks ago, and is working on a fourth bill.

“This sudden drop in employment is unprecedented, and highlights the need for continued household support through rental assistance programs, extended unemployment insurance benefits, and other income-related efforts to help people weather this crisis,” Fratantoni said.

Most Popular Articles

The downside of the hot 2020 housing market: rapid home-price growth

The mismatch in the COVID deflationary impact toward the economy overall and the strength of the housing market due to demographics makes for a troubling formula for home-price growth, which we are seeing. The recent NAR existing home sales report showed 15.5% year-over-year growth in prices. HW+ Premium Content

Nov 30, 2020 By

Latest Articles

Fannie and Freddie need “significant capital” to leave conservatorship, Mnuchin says

In a hearing before the House Financial Services Committee, Treasury Secretary Steven Mnuchin said no definite plans have been made for the future of Fannie Mae and Freddie Mac, but discussed the idea that they could be released from conservatorship before their full capital levels are reached.

Dec 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please