Last week, the Supreme Court turned over the Eviction Moratorium that was put into place by Trump which disallowed landlords from evicting tenants throughout the pandemic. This moratorium didn’t just end, according to the court who ended it, it should have never been a thing in the first place.
If you don’t know:
The moratorium was put into place by the CDC (not a governing body) with the goal to limit the ravages the pandemic was going to have on the economy. After learning many lessons during the 2008 crisis, they were willing to do whatever it took to keep the renters and homeowners under their own roofs. Now, this moratorium has had multiple expiration dates and multiple extensions. As of last week, Oct. 3 was the new expiration for Covid hotspots. However, in a 6-3 ruling last Thursday, the Supreme Court decided that the CDC did not have the authority to implement or extend the moratorium.
What does this mean?
For landlords, they have secured the bag and are back in business. However, hundreds of thousands of renters are new potential eviction victims. The Biden administration is working on the state level to create new renter protections as the pandemic drags on.
MBS are flat this morning after a bad two days where we broke below the 50 DMA. We are locking before tomorrows jobs report which we anticipate will hurt the MBS market.