In normal times, weekly initial jobless claims falling to the lowest level in almost two months. Time -- would sound like a good thing. But with almost another 3 million claims, we remain far away from normal times. We’ve now eclipsed 36m unemployment claims. Goldman Sachs Group Inc. now sees unemployment in the U.S. peaking at 25%, with a slow reversal meaning the rate will hold near 10% by the end of the year. The overhang of unemployed workers seems set to be one of the main risks to an economic rebound, with signs it is already slowing the recovery in China. (Bloomberg)
The Freddie Mac COVID-19 Payment Deferral solution returns a homeowner's monthly mortgage payments to their pre-COVID amount by adding up to 12 months of missed payments, including escrow advances, to the end of the mortgage terms without accruing any additional interest or late fees. This will help borrowers keep their mortgage payment current following their hardship when other options - such as reinstatement, or a repayment plan - are not viable. Fannie Mae also unveiled a COVID-19 payment deferral option that allows homeowners in forbearance due to the pandemic to shift their missed payments to the end of the loan term. (SA)
There was a little good news for the oil market in this morning's International Energy Agency report which said that the outlook had "improved somewhat." Supplies are falling faster than previously expected, with OPEC and its partners slashing output while others like the U.S are forced to scale back drilling. A barrel of Brent for Julu delivery is trading over $30 this morning. (FT)
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.