It is not only rent payments that are late because of the pandemic, but a record number of mortgage payments are also late. While two million people missed their mortgage payments for March, 4.3 million people skipped making their payment in May. This number includes more than 630,000 people who are 90 days past due. Records reveal that more people have made payments so far this month than were made by this time last month. Some of the late payment homeowners have entered into a forbearance program that should protect their credit and give them time to repay the debt.
The pandemic has also caused rent prices to drop in places where it is normally very expensive. In places such as New York, Boston, San Francisco, and San Jose, rent prices in high-end areas have dropped by 10 to 20%. This has left many apartments empty, with landlords scrambling to fill them again – most often by lowering their prices. Landlords who increase their incentives, such as offering one-month free rent – or even two – are seeing more renters who sign a one-year lease.
A Second Stimulus Check
More talk is being tossed around about a second stimulus check for individuals. President Trump has indicated that an announcement would be coming in a couple of weeks. He has said it would be “generous.” The Republicans overall seem to be opposed to it, so it remains to be seen if it will ever happen. The matter is to be discussed in late July.
Stock Market Rebalancing
The stock market has had some significant gains lately, which has resulted in a lot of money being made. Some financial advisors are saying that they expect that there could be a major sell-off of stocks near the end of June so that bonds could be purchased. Some are saying that this sell-off could be in the billions of dollars and will likely involve money being moved from pension plans and mutual funds. If so, this could be the perfect time to buy stock. Although it is not possible to predict how large of an event this will be, being that it is the end of the quarter, it could be significant.
NASDAQ Hits New High
With more businesses opening, NASDAQ has successfully hit a fifth high record in June. Apple’s announcement to start using its own chips seems to be the largest factor in the record gains. The price targets for Apple were raised by three brokerages. The DOW Jones and S&P 500 also saw positive gains on Tuesday.
China Trade Agreement Intact
After some questions were raised about whether the trade agreement with the U.S. was still intact because of recent criticism of China’s move in Hong Kong and of the mistreatment of the Uighurs and other groups, President Trump has confirmed that the agreement is still intact. This confirmation had a positive effect on the market. The continuation of the agreement will lead to an input of billions of dollars into the U.S. market.
Europe May Close Doors to Americans
The rise in the number of new coronavirus cases in the United States has Europe discussing the possibility of closing their doors to travelers from the U.S. Europe is still struggling to control its own cases, so they may ban travel from the United States to Europe – as the U.S. has done recently with other nations to help prevent the spread of COVID-19.