Market Snapshot March 24, 2020
Good Tuesday AM,
Stocks are having a great day on expectations a stimulus/bailout (call it whatever you like) is a done deal. The details are still murky, however I think markets are hearing free money. A large helicopter will start dropping dollars from the sky so we better be ready for it. The only problem is the wind can blow things off course. The Dow is up 1500 points on the news. The other equity markets are doing well, too. The Fed is buying everything thrown at them from mortgages to treasuries to corporate debt, and more. Mortgage bonds and rates are improving. The 10-yr is lagging at .82% today, almost unchanged. Mortgage bonds are so far ahead of where they have ever been that rates should be squarely in the 2’s right now. The problem is there is no liquidity, especially for FHA and VA loans, so rates are almost double that. Conventional loans are still doing great. Beware of non-qm and non-conforming markets right now as there is no oxygen in those markets and it may be tough to get those loans funded. To say we are in a volatile period would be like saying Noah dealt with a little rain. Yes, it is that volatile right now. If you see a rate you like, you should lock as that rate may not be available when you come back from washing your hands for the 20th time.
President Trump want to open America for business again ASAP. I wouldn’t bet against him.
Things will open up, lighten up, and brighten up. For now, stay safe and healthy,
Make today great!