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What You Need to Know About Today’s Market

Check out the real estate and mortgage market update below along with current rate update and a list of other resources that could be of help during this unprecedented time. We remain committed to keeping you informed about today’s market but please know, we are here for you however we can be.

Click on the video above for Michael Gordon’s take on this week’s market news!


  • The Federal Housing Finance Agency announced yesterday that Fannie Mae and Freddie Mac will now buy home loans that go into the government’s forbearance program just after they close. The FHFA director says “Purchases of these previously ineligible loans will help provide liquidity to mortgage markets and allow originators to keep lending.” For more on this, check out Michael’s market update video above!
  • Refinance demand stays high and purchase demand sits at a five-year low. Total mortgage application volume decreased 0.3% last week from the previous week, according to the Mortgage Bankers Association’s weekly mortgage survey. Refinance demand decreased 1% for the week but was a sharp 225% higher than one year ago, when interest rates were over 1 percentage point higher. Refinance demand is also surging because some homeowners want to take cash out of their homes, worried that the economic downturn could worsen. Read more HERE’

  • Here at E3 Realty & Loans, we are still helping homebuyers and homeowners close on their purchase loans and refinances everyday. Since the Shelter In Place Initiative, E3 Realty & Loans has closed loans for home purchases on an average timeline of 24.33 days from submission to close. We are closing refinances at an average timeline of 30 days from submission to close. We are still moving at at great pace to get clients the loans they need.

  • Many fears have been brought up about the unemployment rate skyrocketing, thus creating longterm affects on the economy. Experts predict that unemployment rates during COVID-19 will have “More depth, less length”. This means while the initial punch of unemployment jumping to 15% is extremely high, higher than that of the Great Recession, it’s recovery time is tremendously quicker. See the chart below.

 


Interest rates have stayed pretty consistent from last week to this week but remain at record lows!


  • While many are thinking that this pandemic has forced the real estate market to completely stop, homes are still rapidly hitting the market. Below is how many homes hit the market in a few of our local areas compared to the week prior:
    • Our most recent seven days, April 17th – April 23rd:
      • Brentwood/Antioch/Oakley/Pittsburg/Bay Point: 48
      • Concord/Clayton/Walnut Creek: 53
      • Livermore/Pleasanton/San Ramon/Dublin: 58
    • In the week prior, April 10th to April 16th:
      • Brentwood/Antioch/Oakley/Pittsburg/Bay Point: 34
      • Concord/Clayton/Walnut Creek: 36
      • Livermore/Pleasanton/San Ramon/Dublin: 59
    • We see inventory of homes increases at a steady pace in East County cities increasing by 41.1% and Concord areas increasing by 47.22%. The Tri-Valley cities decreased slightly, by 1 listing, but had increased overall in the month of April so far with 168 new listings compared to 115 in the entire month of March.


  • The financial impact we’re all feeling as a result of COVID-19 is real! The government has rolled out a variety of resources to help during this difficult time. Grants, loans, unemployment, relaxed retirement withdrawal rules, etc., are all avenues to access relief. We encourage you to read through the information contained in the links below along with anything else you may find that could potentially help.

 

  • The IRS is now allowing you to track your stimulus check. For the IRS website, click HERE

 

 

  • Retirement Account Withdrawals: You can use your retirement accounts to help if you’ve been negatively affected by COVID-19.  401(k)’s, IRA’s and similar retirement accounts will allow early withdrawals of up to $100,000 until December 31st, 2020 without being charged the traditional 10% early withdrawal fee. The law also doubles the amount 401(k) participants can take in loans from an account for the next six months to the lower of $100,000 or 100% of the account balance. IRAs don’t permit loans. Please consult with a tax professional to review options and to gain a clear understanding of potential tax consequences. We’re not CPA’s!!! 🙂 

The safety and health of our clients, team and their families is always at the forefront of what we do. In our best efforts to keep everyone in our community safe, we are standing by the shelter in place initiative during this time and will not be holding open any of our listings or showing any occupied homes. With that said, whether buying or selling, we are ready to guide you and help get your prepared for the next step in your journey.


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