As COVID spreads, economists predict trouble for mortgage industry
For some background on the story, here’s a summary of the article:
The U.S. has failed to contain the COVID-19 virus, alone among developed economies, and will suffer the economic consequences, Goldman Sachs economists said in a report issued on Independence Day.
“Over the last few weeks, the covid situation in the U.S. has worsened significantly to the point where the U.S. is now a notable outlier among advanced economies,” the report said. “Other advanced economies show that it is clearly feasible to resume economic life to or beyond current U.S. levels without triggering a spike in virus cases.”
Instead, the virus in the U.S. is spiraling out of control, the report said. In part, it blamed the lack of national leadership – what it called a “bottom-up approach.” The resultant pull-back in consumer spending, which accounts for about three-quarters of U.S. GDP, will likely cause job losses and a steeper recession than expected, the economists said.
“The U.S. took a more bottom-up approach to reopening than most countries, with policy set mostly at the state and city level, and there were bound to be setbacks in at least a few parts of the country as the economy reopened,” the report said.
Following the main story, HousingWire covers a report from the Federal Reserve Bank of Atlanta that indicates the danger of mortgage forbearances turning into foreclosures is rising as COVID-19 infections surge, and an announcement from Zillow that it will resume buying homes via Zillow Offers in five more markets, bringing the total to 20 out of 24 markets.
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