CDC Director Dr. Rochelle Walensky has signed an extension to the eviction moratorium further preventing the eviction of tenants who are unable to make rental payments. The moratorium that was scheduled to expire on June 30, 2021 is now extended through July 31, 2021 and this is intended to be the final extension of the moratorium.
The frothiest real estate markets are ringing alarm bells not heard since before the global financial crisis, the report warns.
“A cocktail of ingredients is sending house prices to unprecedented levels worldwide,” wrote economist Niraj Shah, Bloomberg reports.
“Record low interest rates, unparalleled fiscal stimulus, lockdown savings ready to be used as deposits, limited housing stock, and expectations of a robust recovery in the global economy are all contributing.”
Bloomberg Economics Bubble Ranking
The riskiest housing markets were in New Zealand, Canada, Sweden, Norway, the UK, Denmark, the US, Belgium, Austria and France, the report found.
With interest rates low, the report said there was no obvious trigger that would cause housing prices to fall, but it warned that when interest rates rise, real estate markets will face a test.
It’s been over a year since lenders and the federal government stepped in to help Americans stay in their homes amid the global health and economic crisis caused by the Covid-19 pandemic. And many Americans still need that support.
About 2.1 million homeowners are still in forbearance plans that suspend their mortgage payments, according to Mortgage Bankers Association’s latest data. And about 1.8 million families are not in forbearance, but are already at least 90 days delinquent on paying their mortgages as of April, according to the latest data from Black Knight, which monitors mortgage data.
But those protections are running short on time. President Joe Biden extended the federal foreclosure moratorium earlier this year, but that will expire on June 30, 2021. Many of the forbearance programs on federally backed loans are set to lapse this fall.
n a hearing Wednesday, Senators asked the CEOs of several major banks about what they plan to do to help Americans caught in this situation. Here’s what the heads of Bank of America, Chase and Wells Fargo said.