The markets began Friday morning trading down as the president and the first lady tested positive for Covid-19 which reminded all of us how contagious this disease is. However, by mid-day, stocks recovered much of their losses as Congress confirmed additional stimulus for the economy in the face of a potential second wave of infection, presenting a challenge to economic recovery. The September jobs report was disappointing. The unemployment rate fell to 7.90% from 8.40%. Jobs may have recovered off of their April lows, but the stall is affected by a global economy that is not fully reopened. Many industries are still not operational, or if they are, at very reduced levels.
Housing remains one of the great positives during this pandemic as potential buyers flee the big cities for the suburbs. People who can afford to be a homeowner are going for it. Mortgage rates at all-time lows are serving as an economic stimulus since reduced payments leave more money in the pockets of homeowners, freeing up dollars for more discretionary spending.
Here at Insignia Mortgage, we continue to see unprecedented demand for residential, bridge, and commercial real estate financing. Fortunately, our suite of lenders has healthy balance sheets, are mostly local and portfolio lenders, and are working closely with our team to help our clients with their real estate financing needs.