Existing home sales surged in July by the most on record, increasing 24.7% from June to a 5.86 million annualized rate. The housing market has been booming as a result of low mortgage rates, which have been hovering around 3%, pent up demand from millennials who have been entering the … … READ MORE >
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Fintechs helped with the Paycheck Protection Program. Why not the Main Street Lending Program?
Fintechs played an important role in helping the Paycheck Protection Program gain broad acceptance. Now, fintechs could do the same in the Main Street Lending Program — if, that is, the government makes some prudent changes to the program. … READ MORE >
CHART OF THE DAY: Weekly initial jobless claims higher than expected
In a sobering surprise, the Labor Department reported on Thursday that initial jobless claims for the week ended Aug. 15 reached a higher-than-expected 1.1 million, a sign the road to economic recovery will be bumpy and volatile as the country struggles to gain footing amid the COVID-19 pandemic. … READ MORE >
COVID-19 stifles middle market private equity dealmaking
With reduced dealmaking, private equity firms are left to prioritize their existing portfolio investments and must measure the continuing uncertainty created by the pandemic. … READ MORE >
RSM’s exclusive MMBI survey reveals how the Main Street Lending Program can be improved
RSM’s survey for its proprietary Middle Market Business Index for July suggested that the Main Street Lending Program could gain broader participation with targeted changes and greater clarity about the program. … READ MORE >
CHART OF THE DAY: Auto inventory slump may be sign of upcoming sales strength
Auto sales have accelerated over the past three months, with July U.S. new vehicle sales hitting their highest point since mid-January according to data compiled by Ward’s Automotive Group. … READ MORE >
FHA mortgage delinquencies show some homeowners in trouble
Federal Housing Administration mortgage delinquencies hit an all-time, four-decade high, according to data released on Monday, a sign that disadvantaged homebuyers are clearly struggling in the pandemic-impacted economy.
The share of FHA mortgage delinquencies rose to almost 16%, in the second quarter, the highest level since 1979, as reported by the Mortgage Bankers Association. The delinquency rate for conventional loans, by comparison, sits at 6.7%. … READ MORE >
CHART OF THE DAY: Home builder optimism reaches record high
Many industries are still recuperating from the impact of the pandemic, but housing has been fortunate to experience a V-shaped recovery. Not only has the Housing Market Index from the National Association of Home Builders recovered to pre-pandemic levels, it has now matched December 1998 for an all-time high in the index’s 35-year history. … READ MORE >
Hotel occupancy data: It’s only half the story
At first glance, hotel occupancy rates have been looking favorable recently. But with many hotels closing as the coronavirus spreads, occupancy rates are not providing the full picture. That’s where a new measurement called total-room-inventory occupancy, or TRIO, comes in, and the picture isn’t so promising. … READ MORE >
CHART OF THE DAY: Pipeline pressures remain muted amid inflation fears
Headline consumer and producer prices in July both exceeded consensus expectations, prompting worry about rising prices. Meanwhile, a look closer at price pressures along the production chain suggests there is less near-term inflation fear than meets the eye. Year-over-year core producer prices and final demand are both negative, reflecting diminished pricing power for firms. … READ MORE >