Mortgage News Weekly 7/27/20

In This Issue…

A Look Into the Markets

Economic Calendar for the Week of July 27 – July 31

A Look Into the Markets

This past week, Freddie Mac reported the average 30-year mortgage is at an all-time low of 3.01%.

At the same time, the NASDAQ and Stocks overall are hovering right near all-time highs. Typically, when Stocks move higher, so do rates. Not this time around. So, what’s happening?

Bond prices are moving higher and rates lower in response to fear and uncertainty surrounding COVID-19, along with the reality that inflation will remain low and unemployment will remain elevated for the foreseeable future. Also, helping Bonds and rates is the daily buying of Treasuries and mortgage-backed securities from the Federal Reserve.

Stocks are hovering near all-time highs due to state and economy re-openings, positive economic data, along with an overwhelming monetary response from the Federal Reserve and Treasury.

It’s very likely that both Stocks and Bonds will continue to remain elevated in price, with rates remaining low, as we work through COVID-19 while monetary response remains in place.

Once we move past COVID-19 — and we will — the monetary response will ratchet down significantly and the next directional move in Stocks, Bonds, and rates will be determined by the health of the economy, inflation, corporate earnings, and the relative performance of the U.S. versus the globe.

Bottom line: Home loan rates will likely remain historically low for quite some time as it will take a while to fully repair the economic damage caused by COVID-19.

If you or someone you know can benefit from these rates, now is a historic time to lock.

If you or someone you know has questions about home loans, give me a call. I’d be happy to help.

Mortgage Market Guide Candlestick Chart

Fear and uncertainty surrounding COVID-19 hold Mortgage Bond prices just below all-time highs, while home loan rates remain at record lows.

Calendar of the Week

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services, and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors. As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you. Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features, or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.