Market Snapshot May 20, 2020
Good Morning on this best day of the week, Wednesday
Equities rallying a bit this a.m. after selling off into the close yesterday. The 10-yr is sitting at .70% and mortgage bonds are doing okay. In truth, over the last few sessions, mortgage bonds have outperformed treasuries which is a sign that the ship is righting. The theory would go that as Mortgage Bond spreads narrow with Treasuries, investors are feeling more confident about mortgages and are accepting less of a premium. That should continue to drive rates lower.
Forbearance update from Forbes showed that more than 4 million homeowners have now been granted forbearance on their mortgage loans. But in 70% of those cases? The homeowners didn’t actually need the break.
Short day today, we will get the FOMC meeting minutes in a bit and tomorrow is unemployment claims data, so there is likely to be some volatility.
The guidance was and is, if you see a rate that works, take it. During extreme volatility, there is no benefit to waiting.
Please remain safe and healthy, make today great!