California Coronavirus Weekly Update

by | Feb 22, 2022 | C.A.R., TSBOR, TSMLS | 0 comments

Welcome to the 101st issue of the California Coronavirus Weekly Recap newsletter.  

​​​​​​In This Issue:

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The Economy & Your Finances: U.S. unemployment rises, national unemployment dips for third straight week; CA unemployment also falls; CA mortgage relief fund is openU.S. unemployment dipped for the third straight week, down to 223,000 from 239,000 the week prior, according to the U.S. Department of Labor’s report last week. Employers are searching – even competing with each other – for people to fill open positions. Historically, there have been an average of 2.4 unemployed people per job opening, but right now, there are only 0.6 unemployed people per job opening.

California reported a large decrease in initial claims: 2,595 fewer than the prior week, for a total of 49,315, although it has the second-highest rate of insured unemployment (which shows the number of people currently receiving unemployment insurance as a percentage of the labor force), at 2.7 percent. The number of continuing unemployment claims in the state was 445,333. The U.S. total for continuing claims was 2,000,770.

The online portal for the California Mortgage Relief Grant Program is live. The program will fully cover up to $80,000 per household for those approved, paid directly to the loan servicer. Those eligible for assistance include California homeowners who faced pandemic-related financial hardship after Jan. 21, 2020, and could not pay their mortgages, if those residents are also at or below 100 percent of their county’s Area Median Income; own a single-family residence, condominium or permanently affixed manufactured home; and meet one of the following qualifications: are receiving public assistance, are severely housing burdened, or have no alternative mortgage workout options through their mortgage servicer. 

​Sources: Newsweek, U.S. Dept. of Labor, CA Mortgage Relief 
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The Market & Industry: Mortgage rates surge; new-purchase mortgage applications down slightly but still strong; CA mortgage delinquencies fall; CA housing affordability improved in Q4 2021 

Following a strong employment report where the nation added nearly 500,000 jobs in January, and elevated levels of inflation, interest rates have surged in the past two weeks. The Freddie Mac average 30-year fixed rate mortgage rate remained at 3.69 percent in their latest report. However, this weekly data does not incorporate the latest daily readings from originators, which jumped above 4 percent for the first time in more than two years. According to Mortgage News Daily, the 30-year fixed rate mortgage yesterday was 4.12 percent, the 15-year fixed rate was 3.35 percent, and the 5/1 adjustable-rate mortgage (ARM) was 3.73 percent. The U.S. Federal Reserve has already signaled an increase in their target rate in March, as well as an unwinding of their portfolio of Mortgage-Backed Securities (MBS), so this increase is likely to persist in the coming months. 

Although new-purchase mortgage applications continue to moderate from 2021 levels, they remain on par with 2020, which was a robust year for homebuyer demand. Last week, mortgage applications slipped 12 percent from where they were at the beginning of February 2021. However, that puts the purchase index roughly 3 percent higher than it was in 2020, which is also nearly 20 percent higher than it was in early February of both 2018 and 2019. Though higher interest rates are expected to curtail demand slightly in the coming months, relative to the decadal highs reached last year, homebuyers are maintaining a level of interest that exceeds pre-pandemic standards. 

Mortgage delinquencies fell further in California during Q4 2021. Despite the expiration of many pandemic-driven protections for homeowners and tenants, the mortgage market continues to improve. Recently released estimates from the Mortgage Bankers Association show that total delinquencies in California continued to fall during the final quarter of 2021 to just 3.24 percent of all loans. That is down from 3.63 percent in the 3rd quarter of 2021 and from a peak of 6.83 percent of all loans during the second quarter of 2020. Perhaps more important than the magnitude of the decline is its consistent improvement: Q4-2021 represents the 6th consecutive quarterly decrease in mortgage delinquencies in California. There was a slight rise in 30-60- and 61-90-day delinquencies, but serious delinquencies of 90 days or more fell by more than 50 basis points.

California housing affordability improved in Q4 2021. A tempering of home price growth combined with a solid increase in household incomes improved the affordability outlook, C.A.R. reported in its Traditional Housing Affordability Index (HAI). The percentage of home buyers who could afford to purchase a median-priced, existing single-family home inched up to 25 percent from 24 percent in the third quarter but was down from 27 percent in the fourth quarter of 2020. The fourth quarter of 2021 figure is less than half of the affordability index peak of 56 percent in the first quarter of 2012.
 
Sources: Freddie Mac, Mortgage News Daily, C.A.R., C.A.R. Market Minute, Mortgage Bankers Association ​​​​​​
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Around the State: L.A. County drops mask outdoor masking requirement for vaccinated; Disneyland allows vaccinated inside unmasked; how to order a free COVID-19 test 

As the number of hospitalized COVID-19-posiitive patients continues to fall, Los Angeles County relaxed its outdoor masking rules today, at 12:01am. The revised guidance will allow people to go without face coverings outside at K-12 schools and child-care facilities, and it will apply to exterior areas of “mega” events such as those at the Hollywood Bowl, Dodger Stadium, SoFi Stadium and Los Angeles Memorial Coliseum. Masks continue to be required by the county in indoor public spaces, regardless of vaccination status. County health officials had promised to drop outdoor masking requirements when coronavirus-positive hospitalizations dropped below 2,500 for seven consecutive days, which it did last Wednesday. The county had originally planned to wait until the vaccine for the youngest children could be approved, but that plan was abandoned once the federal review process for that vaccine was delayed. 

Officials at Disneyland on Tuesday confirmed that the Anaheim resort will follow the state’s guidelines by allowing vaccinated visitors to enter indoor restaurants, stores and attractions without masks, starting Thursday. Unvaccinated visitors must still wear a mask in those settings, but park employees will not be checking vaccination status, according to Disney representatives. Following Disneyland’s lead, Knott’s Berry Farm and Sea World have also announced plans to follow state regulations. Goldenvoice, organizer of the Coachella and Stagecoach festivals, said Tuesday that it would eliminate all COVID-19 safety precautions from this spring’s events. 

As of 4:32 a.m. today, there had been 8,830,680 reported cases of COVID-19 in the state, for a daily average of 18,866. This is 71.5 percent lower than two weeks prior. Hospitalizations statewide are declining quickly, at 7,971, which is 23.4 percent fewer than the last week. Statewide, only 18.4 percent of ICU beds are available. California has administered 69,678,240 doses of the vaccine, and 77.9 percent of residents have received at least one dose. Over the last seven days, an average of 57,641 vaccine doses have been given per day. Among all Californians, 60.2 percent are fully vaccinated. 

To order free at-home COVID-19 tests, you can order from either of two websites, covidtests.gov or the U.S. Post Office site, or call the hotline sponsored by the federal government: 1-800-232-0233 (TTY 1-888-720-7498, for the hearing impaired). Check the expiration date on the box and do not use tests after they have expired because they will not work. 

Sources: San Francisco Chronicle, Los Angeles Times, Disneyland, Covidtests.gov
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Health Check-Up: FDA delays approval of vaccine for the youngest; pregnant women who get vaccinated pass on immunity to their babies; where to schedule your booster 

Although the U.S. Food and Drug Administration (FDA) had planned yesterday to convene a panel of advisors to consider granting emergency use authorization to a COVID-19 vaccine for children under age 5, federal regulators postponed the review in order to wait for more data. This means that the vaccine is not likely to be approved this month or next month. In December 2021, a study showed that two doses of the vaccine for the youngest children failed to produce an effective immune response in 2- to 4-year-olds, although it did in children aged six months to 24 months old. The companies had hoped to get the first two doses approved while waiting for data on a third dose, expected in early April. Pete Marks, head of the FDA’s vaccine division, hinted that the data at this point was not good enough to merit authorizing the vaccine for young kids, citing the agency’s standards. 

A new study at the U.S. Centers for Disease Control and Prevention (CDC) found that women who got vaccinated against COVID-19 while they were pregnant passed on their immunity to their babies. Infants under 6 months old were found to be 61 percent less likely to be hospitalized with COVID-19 if their mothers had received a Pfizer or Moderna vaccination against the disease during pregnancy than if they hadn’t. The study examined data from 20 pediatric hospitals in 17 states between July 1, 2021, and January 17, 2022. Among 379 hospitalized infants under 6 months old studied, 176 had COVID-19 and 203 did not. The study only examined babies born from mothers who had completed a two-dose regime of vaccination (either Pfizer or Moderna, not the Johnson & Johnson vaccine) while pregnant. It did not include infants from mothers who had been vaccinated before becoming pregnant, or who had contracted COVID-19 and recovered either before or during the pregnancy. It is well known that mothers pass on antibodies both through the placenta and through breastfeeding, and there is evidence from other diseases that maternal immunizations can provide protection to infants through what they call “passive transplacental antibody transfer.”

To get vaccinated or boosted, visit California’s vaccination website, myturn.ca.gov, which is offering appointments for people aged 5 and up. Vaccinations are also available at walk-in clinics, doctors’ offices and pharmacies. Some counties have their own vaccine scheduling or information websites, such as L.A. County’s scheduling site, San Francisco’s scheduling site, San Diego County’s information site, Orange County’s information site, and Sacramento County’s information site.

Sources:  Los Angeles Times, Bloomberg, Reuters, Mercury News, CDC, L.A. County Dept. of Public Health, SF.gov, San Diego County, Orange County, Sacramento County Dept. of Public Health