By Natalie DeCoste
The Supreme Court handed down one of the final decisions of this term, choosing to keep the national eviction moratorium in place after a lawsuit challenged its constitutionality.
On Tuesday, a divided Supreme Court denied a request to block the CDC’s eviction moratorium that prevented landlords nationwide from evicting tenants who fail to pay rent amid the Covid-19 pandemic. The Court ruled 5-4 on the matter, with Justice Brett Kavanaugh breaking ideological ranks and writing a concurring opinion.
In his concurrence, Justice Kavanaugh agreed with the District Court and those seeking to end the moratorium that the CDC exceeded its existing statutory authority by issuing a nationwide eviction moratorium. However, Justice Kavanaugh decided to deny the request because the CDC plans to end the moratorium on July 31.
“Because the CDC plans to end the moratorium in only a few weeks, on July 31, and because those few weeks will allow for additional and more orderly distribution of the congressionally appropriated rental assistance funds…In my view, clear and specific congressional authorization (via new legislation) would be necessary for the CDC to extend the moratorium past July 31,” wrote the associate justice.
The CDC mandated the eviction moratorium to keep people in their homes and out of crowded settings like shelters to stop the spread of the virus. The moratorium was extended by the CDC and the Biden administration until July 31 amidst a state-level struggle to spend the $21.5 billion in emergency rental aid included in the American Rescue Plan earlier this year.
Data from March showed that by the end of that month, 6.4 million American households were behind on rent. According to the U.S. Census Bureau’s Household Pulse Survey, as of June 7, roughly 3.2 million people in the U.S. said they faced eviction in the next two months. These staggering numbers reflect the breadth of the issue renters and landlords who have not received payments face.
Amidst the ongoing struggle for renters, potential home buyers are also hitting hiccups as record-high house prices prevent people from purchasing their dream home. According to the Mortgage Bankers Association’s seasonally adjusted index, weekly mortgage demand is declining, down 6.9% for the week. For the same week in 2020, applications are down 17%.
Mortgage demand is now at its lowest point in almost a year and a half, reflecting weakening affordability, particularly at the lower end of the market where demand is strongest. Nationwide house prices are up double digits over the past year, rising more than 14% in April year over year.
“Purchase applications for conventional loans declined last week to the lowest level since last May. The average loan size for total purchase applications increased, indicating that first-time homebuyers, who typically get smaller loans, are likely getting squeezed out of the market due to the lack of entry-level homes for sale,” said Michael Fratantoni, chief economist at the Mortgage Bankers Association.
In addition to the increasing prices, mortgage rates are also creeping up after being so low the past year. The average rate for 30-year fixed-rate mortgages rose last week from 3.18% to 3.20%, and interest rates began this year at about 2.8%.
