George Duarte, Author at George L. Duarte

Last week’s scheduled economic news included readings on inflation and retail sales. Weekly reports on mortgage

rates and new and continuing jobless claims were also released. In other news, the FHFA announced an increase in

fees charged by Fannie Mae and Freddie Mac for home loan refinance transactions.

Inflation Readings Mixed as Retail Sales Fall

Consumer prices rose by 0.60 percent in July and matched June’s reading. Analysts expected a July reading of 0.40

percent growth. The Core Consumer Price Index, which excludes volatile food and energy sectors, rose by 0.60

percent in July and exceeded June’s reading of 0.20 percent and July’s expected reading of 0.20 percent price

growth.

Retail sales dropped to 1,20 percent growth in July as compared to June’s reading of 8.40 percent growth. July’s

retail sales reading fell short of the expected rate of 2.00 percent. Retail sales excluding the automotive sector rose

by 1.90 percent in July as compared to June’s retail sales growth rate of 8.30 percent Declining retail sales were

likely caused by a resurgence in Covid-19 cases in some areas.

State and local guidance on retail re-openings varied and likely impacted retail sales according to how Covid-19

regulations were interpreted and enforced. The federal government failed to enact a second round of stimulus

payments that would have provided Americans with extra cash for purchasing retail goods and services.

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week; rates for 30-year fixed-rate mortgages rose by eight

basis points to 2.96 percent on average. Rates for 15-year fixed-rate mortgages rose by two basis points to 2.46

percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.90 percent. Discount points averaged

0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 963,000 claims as compared to the prior week’s reading of 1.19 million new claims

filed and expectations of 1.08 million initial claims filed Continuing jobless claims were also lower than for the

previous week. 15.50 million ongoing jobless claims were filed last week as compared to 16.10 million claims filed

during the prior week. Falling jobless claims numbers could reflect the re-openings of business and rehiring of

employees. This progress could be short-lived as Covid-19 cases increased last week in some states where re-

opening may have been done too soon.

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on

housing market trends, and Commerce Department reports on housing starts and building permits issued. Weekly

reports on mortgage rates and jobless claims will also be released.

What's Ahead For Mortgage Rates This Week - August 17, 2020 Last week’s scheduled economic news included readings on inflation and retail sales. Weekly reports on mortgage rates and new and continuing jobless claims were also released. In other news, the FHFA announced an increase in fees charged by Fannie Mae and Freddie Mac for home loan refinance transactions.

Inflation Readings Mixed as Retail Sales Fall

Consumer prices rose by 0.60 percent in July and matched June’s reading. Analysts expected a July reading of 0.40 percent growth. The Core Consumer Price Index, which excludes volatile food and energy sectors, rose by 0.60 percent in July and exceeded June’s reading of 0.20 percent and July’s expected reading of 0.20 percent price growth.

Retail sales dropped to 1,20 percent growth in July as compared to June’s reading of 8.40 percent growth. July’s retail sales reading fell short of the expected rate of 2.00 percent. Retail sales excluding the automotive sector rose by 1.90 percent in July as compared to June’s retail sales growth rate of 8.30 percent Declining retail sales were likely caused by a resurgence in Covid-19 cases in some areas.

State and local guidance on retail re-openings varied and likely impacted retail sales according to how Covid-19 regulations were interpreted and enforced. The federal government failed to enact a second round of stimulus payments that would have provided Americans with extra cash for purchasing retail goods and services.

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week; rates for 30-year fixed-rate mortgages rose by eight basis points to 2.96 percent on average. Rates for 15-year fixed-rate mortgages rose by two basis points to 2.46 percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.90 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 963,000 claims as compared to the prior week’s reading of 1.19 million new claims filed and expectations of 1.08 million initial claims filed Continuing jobless claims were also lower than for the previous week. 15.50 million ongoing jobless claims were filed last week as compared to 16.10 million claims filed during the prior week. Falling jobless claims numbers could reflect the re-openings of business and rehiring of employees. This progress could be short-lived as Covid-19 cases increased last week in some states where re-opening may have been done too soon.

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing market trends, and Commerce Department reports on housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims will also be released.

The Importance of Reviewing Your Insurance Policies During The COVID-19 Pandemic The COVID-19 pandemic has taken the world by storm. Millions of people all over the world have been infected and businesses have ground to a halt. During this time, it is important for everyone to take a breath, pause, and look at their insurance policies.

The reality is that the economic crisis is following in the footsteps of the obvious public health emergency. In order for everyone to hold their finances together, it is important to explore all of the options. This includes looking at insurance policies.

Business Interruption Insurance

One of the first policies or riders that everyone has to look for is called business interruption insurance. This is an insurance policy that might be able to assist companies that are struggling with reduced revenue streams due to interruptions in their normal business operations.

For example, if a business is forced to shut down due to the COVID-19 pandemic, this might fall under the category of business interruption insurance. This can help businesses bridge the gap until they can reopen again.

Civil Authority Clauses

This is a feature that is common in property insurance. This insurance claim can be triggered if government policies restrict the entry of people onto the property of the policyholder. If this restriction leads to lost income, then the insurance policy can be triggered. Everyone should check their policies to see if this clause is included as this can provide funds to businesses that might not otherwise be able to stay open.

Defensive Policies And Riders

Finally, defensive policies are often put in place to help companies defend against lawsuits that might be filed against the company related to injuries and illnesses. Without a doubt, there will be a slew of lawsuits filed related to the COVID-19 pandemic. Defensive policies can help companies cover legal fees, settlement costs, and other expenses related to these lawsuits.

Defensive policies are also called D&O insurance (Directors and Officers Insurance) as well as General Liability Insurance. It is important to read the insurance policy carefully to see if these policies are included.

Businesses need to explore every available option when it comes to reopening. These insurance policies can help them survive the COVID-19 pandemic.