Demand Propels Home Prices Upward 2 days ago 2020-11-03 Christina Hughes Babb The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News November 3, 2020 23,185 Views Home / Daily Dose / Economist Predicts Foreclosure Wave Will Crash Down in 2021 Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: The Industry Pulse: Appointments and Promotions Next: Best of DS5: Advancing Tech and Working From Home Economist Predicts Foreclosure Wave Will Crash Down in 2021 Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast “The Online Movie Show,” co-host of the award-winning WAPJ-FM talk show “Nutmeg Chatter” and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill’s Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire. The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Subscribe A leading economist is warning that this year’s booming housing market will soon give way to a rising tide of foreclosures that will submerge many homeowners in the coming year. In an opinion piece published on Bloomberg, Michael R. Strain, the John G. Searle Scholar and the director of economic policy studies at the American Enterprise Institute (AEI) observed that while existing homes increased by 9.4% in September to 6.6 million units on an annual basis – the highest level in more than 14 years – and the median existing-home price was 14.8% higher in September versus one year earlier, this demand has been fueled by limited supply and historically low mortgage rates. “The housing sector is relatively sensitive to interest rates, and mortgage costs — already low before the pandemic began — are at rock bottom, driven to current lows by the Federal Reserve’s rate cuts and asset purchases,” Strain wrote. “As of Oct. 22, the average 30-year fixed-rate mortgage was 2.8%, down from 3.75% a year before. Fifteen-year fixed-rate mortgages have been below 2.75% since the beginning of May.” The COVID-19 pandemic also complicated the picture. With greater housing, people became eager for more living space. However, the supply of new houses has dwindled – Strain noted AEI Housing Center estimated there was only slightly more than two months’ worth of housing inventory in September. The problem, Strain forecasted, was a so-called “K-shaped” recovery that will benefit wealthier Americans but leave lower-income households behind. “Weak labor markets are typically a headwind for the housing sector,” he continued. “But job losses have been concentrated among low-wage workers who are less likely to purchase houses. The unemployment rate for college graduates is 4.8%, considerably lower than the overall rate of 7.9%.” As a result, he continued, a “wave of foreclosures is likely coming that will hit low-income homeowners. As of August, over 10% of the eight million single-family mortgages backed by the Federal Housing Administration were delinquent by more than three months. According to the FHA, the reason for 86% of those delinquencies was ‘a national emergency,’ a category that includes the pandemic. These delinquencies are heavily concentrated among loans associated with low credit scores.” While federal forbearance policies put a temporary freeze on foreclosures—only 352 foreclosures were started in August, compared with 10,438 in February—Strain commented that policy would not remain in place next year. “An important explanation for why there are so few foreclosures amid so many delinquencies can be found in the CARE Act, the economic recovery law passed in March,” he stated. “It included forbearance provisions that allowed borrowers with government-backed mortgages to postpone (or reduce) payments for up to 12 months if they suffered COVID-related financial hardship. When these forbearance provisions expire in 2021, expect a wave of foreclosures to follow.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Phil Hall Print This Post Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago
By Jack TarrantKAMAISHI, Japan (Reuters) – Uruguay delivered the first upset of the Rugby World Cup with a stunning 30-27 victory over a fatigued and error-prone Fiji in a thrilling Pool D match at the Kamaishi Recovery Memorial Stadium yesterday.While not ranking as high in the shock stakes as Japan’s victory over twice-champions South Africa at the 2015 World Cup, it was every bit as deserved and the Uruguayans, many in tears, danced with their small but vocal band of fans after the final whistle.Uruguay’s only previous World Cup victories had come against Spain and Georgia, making yesterday’s win their biggest scalp in the small Japanese seaside town of Kamaishi, which was devastated by the 2011 tsunami and earthquake.“I’m really proud of my country, we’re not the biggest, we’re not the tallest but we came here to win,” said emotional Uruguay captain Juan Manuel Gaminara, draped in the flag of his country. “We’ve been preparing for four years for this, I’m really proud of my country. We never had anything granted, we always have to qualify. You saw the passion. I’m really proud.”The South Americans, mostly amateurs, led 24-12 at halftime on the back of converted tries from scrumhalf Santiago Arata, number eight Manuel Diana and centre Juan Manuel Cat as well as a penalty from Felipe Berchesi.Berchesi, whose 15 points was a record for a Uruguayan player at a World Cup, kicked two more penalties in the second half to keep the scoreboard ticking over and lead Los Teros to only their third victory in 12 World Cup matches. “Can I tell you a little secret? Yesterday I missed pretty much all my kicks so I had trouble sleeping,” said a beaming Berchesi.Then Uruguay earned a bonus point, the upset leaves Fiji’s hopes of reaching the World Cup quarter-finals for the first time since 2007 in tatters after they also lost their opening match to Australia on Saturday.“Congratulations to them,” said Fiji coach John McKee, whose side beat Uruguay 68-7 last year. “The guys made critical errors that gifted them tries. In the first half we turned the ball over too much on the edges but we really believed we could get back in the game.”“We’ve got to get ourselves off the floor now and make sure we’re ready to play Georgia in eight days’ time. That’s a critical game for us.”GOOD STARTFiji, who had been relaxing at the beach to recover from the disappointment of their loss to the Wallabies on Saturday, started well against the 19th ranked Uruguayans.A neat lineout move saw hooker Mesulame Dolokoto open the scoring in the seventh minute but Arata soon pounced on a turnover to juke his way under the posts.Fiji returned to the forwards for their second try when prop Eroni Mawi dived over from one metre out on 18 minutes and the Pacific islanders looked like they might motor away from opponents they crushed 47-15 in the pool stages four years ago.The Uruguayans had other ideas and tries from Diana and Cat rocked the Fijians with Berchesi adding his first penalty to send them into the break with a useful lead. Fiji responded with a try from lock Api Ratuniyarawa, who barged over the line seven minutes into the second half but Josh Matavesi missed the extras and a subsequent penalty.Regular flyhalf Ben Volavola was brought on to steady the ship but it was Uruguay who scored next with Berchesi extending their lead to 10 points with 20 minutes remaining.Fiji finally started to play some free-flowing rugby and were rewarded when substitute scrumhalf Nikola Matawalu crossed over with 14 minutes to go to set up a dramatic climax.Uruguay were defending desperately but just when it looked like the Fijians might manage to reel them in, Berchesi was presented with another chance from the tee, which he nailed. “I tried to imagine I was kicking in an empty stadium,” he said.Fiji kept battering away at the exhausted men in blue shirts but when Matawalu finally crossed for his second try after the fulltime gong had sounded, it was too little, too late.“The main difference between us was our team effort,” Berchesi said.“They (Fiji) have really good individuals and are really strong in the one-on-one but we played well together as a team and that is our main strength.” Uruguay will need to count on that collective spirit for the match against Georgia in Kumagaya in four days’ time.