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Friday Market Update for the Week of December 11th

Happy Friday, Brian Manning here with the weekly update. Let’s get right to it, so Thursday of this week we had the ECB announce that they will increase their bond buying program by 500 billion euros as they go into their second wave of the lockdown this is the European Central Bank’s way of infusing money and keeping interest rates low. What’s interesting is, we want to watch the Federal Reserve now and see if the Federal Reserve follows suit with them. So, right now, we do have the Federal Reserve in a bond-buying program as well purchasing treasuries and mortgage-backed securities. The Federal Reserve does meet next week, so if they do beef up a bond-buying program as well, the positive impact for all of us in this room is that it’s going to cause mortgage rates to go even lower, so let’s wait and see what happens with the Federal Reserve next week.

 

 

Also, this Thursday and every single Thursday, we get unemployment information. So, unemployment claims for new filings were up by 137,000 people, so unfortunately, it’s just not heading in the right direction. Pandemic Unemployment Assistance claims were down 350,000 people but the question in the unknown is that because people’s benefits were expiring, I’m not really sure but considering where we are in this time of the year and when the pandemic started in March and the amount of people that started going on unemployment, that’s probably what’s happening right now.

Also, Thursday of this week, we got CPI. So, CPI is the Consumer Price Index and we really think that the CPI is the best gauge of inflation here in the US because it includes out-of-pocket medical expense cost for all of us as consumer over-year basis being up 1.6% right now and what’s interesting is that the residential rent component of CPI shows that residential rents are up 2.4% on a year-over-year basis, so inflation kind of only slightly steadied right now, 2/10th isn’t really bad, but always something we talk about and we really want to keep a close eye on.

Today, stocks are down, bonds are kind of a recipient of this and it’s probably because investors hopes are diminishing on a stimulus deal coming together, you had McConnell shoot it down again and it’s just not happening right now, so bonds are the recipient of money right now stocks are down and it’ll be nice to get through this weekend, see what happens next week.

Overall, mortgage rates are relatively unchanged this week. They’re just hovering at all time record lows which is phenomenal So, if you’re interested in refinancing, absolutely. Now is the time to start looking at this.

I’m around all weekend, if you have any questions, let me know. I’d love to help you in any way I can, Call me on my cellphone, text me. If you need a revised pre-approval, want to run some numbers, just have general questions, I’m available, reach out to me at any time. I hope you have a wonderful, snowy Friday. I’ll talk with you soon.

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