5/15: MetroIntelligence Economic Update by P. DUFFY

Another three million workers filed for unemployment, for a total of 36.5 million since mid-March

In the week ending May 9, initial unemployment claims were 2,981,000, a decrease of 195,000 from the previous week’s revised level. This brings the total number of first-time claimants to 36.5 million since mid-March, or 22.4 percent of the March labor force.



Purchase loan applications rise another 11 percent in weekly survey

The Market Composite Index increased 0.3 percent on a seasonally adjusted basis from one week earlier, with purchase loans up 11 percent (but down 10 percent year-on-year) and refinance activity falling 3 percent (but up 201 percent year-on-year).  The average contract interest rate for 30-year fixed-rate mortgages increased to 3.43 percent from 3.40 percent.



New home mortgage applications fell 25 percent from March and 12 percent year-on-year

The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for April 2020 shows mortgage applications for new home purchases decreased 12 percent compared from a year ago. Compared to March 2020, applications decreased by 25 percent.



1Q20 mortgage delinquency rate rose to 4.36 percent, up 59 points from previous quarter

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.36 percent of all loans outstanding at the end of the first quarter of 2020, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.  The delinquency rate was up 59 basis points from the fourth quarter of 2019 and down 6 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the first quarter fell by 2 basis points to 0.19 percent.