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Friday Market update: Week of June 26th

Happy Friday! Brian Manning with the weekly update, let’s get right to it!!

So…this week, stocks are down based on a spike in COVID cases, and with stocks being down, the bonds have been or becoming the beneficiary of money moving around, so we talked about this before when investors are nervous, they take money out of the stock market with the equity’s market and they invest money in bonds. Because bonds are typically a safe haven and a safe place to put money and then there’s certainly a type of bond that’s mortgage-back security, so when stock market are tanking like they are right now, due to a spike in cases, bonds are the beneficiary of this, so we’re certainly seeing mortgage rates go down which is really good to see, so if you’re considering re-financing, right now is just a smoking hot time to look at re-financing so you should take a look at that. Also this week, on average, every day we had the federal reserve buying about $4.5 billion in mortgage-back securities so the federal reserve still implementing their quantity and envision process still buying mortgage-back securities and they’re also really helping keeping mortgage rates low, as well.

Let’s see, we got May existing home sales were down 9.7% this is really a gauge that measures signed contracts for home shoppers who were out in March and April. So really, not surprising to see existing home sales down for the month of May. As far as Inventoria’s concerned, Inventoria _ over your basis is down around 18.8%, so I know for us here, boulder is just a fun range we’re certainly seeing houses sell extremely quickly right now and that’s really… largely based on Inventoria just being so low.

Then we get the mortgage banking association, they give us information every single Wednesday on mortgage applications. Purchase mortgage applications were down 3% on a week-over-week basis, you know that’s really not that bad because last week we were we had an 11-year high for new purchase mortgage applications, so you know, we have an 11-year high, to come down a little bit is really fine.

Thursday this week, we got jobless information and we had initial jobless claims at 1.5 million, so there’s new, unemployment benefits that were filed by 1.5 million people continuing claims are down a little bit, but continuing claims are still at 19.5 million people which is 7 times what we’re used to seeing, so continuing claims is still something for us to pay very close attention to. Real time unemployment right now is probably measuring right around 16%, so we’re still seeing some serious problems with unemployment and you know, it just kind-of remains to be seen what’s going to happen with the optic and the spike in COVID cases, what are states going to do now? How is that going to impact the re-opening? What’s that going to do to businesses? What will that do with businesses reopening and unemployment coming back down, and that’s kind-of what the stock market is looking at here, so it kind-of remains to be seen. Last note, just something to laugh about – the government sent out stimulus to 1.1 million dead people and that total of $1.4 billion of stimulus checks that they sent out that we’ll probably never see again, so good job administration for sending out $1.4 billion of money that you’ll never see again.

Now, I’m around all weekend. If you have any questions, let me know, love to help you. Call my cell phone, text me, whatever works for you is good for me! Have a great day!

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