In this post, I’m going to educate you about what is going on in the economy. Most any economic indicator (GDP, New Home Sales, Jobless Claims, etc.) from Q1 and Q2 is going to be, in the words of Billie Eilish, “baaaaaaaaaaad.” Don’t reach for your mid-day cocktail yet, I have some good news for you.The market is already looking forward to Q3 and Q4 numbers while closely monitoring the pace at which states are opening back up and how citizens are responding. The positive news is that the amount of money being pumped into the economy through unemployment programs and the PPP will be enough stimulant to lead to better numbers in the back half of the year. Additionally, the Fed has done a phenomenal job rolling out the 2008 ready-made playbook and more since this crisis began. The circumstances surrounding this crisis—caused by a virus, and not from bad actors in the financial markets world—has allowed the Fed to act swiftly and effectively.Both Fed Chairman Powell and Secretary Mnuchin say they are ready with even more liquidity injections if needed. Fortunately, for mortgage rates, the volatility has died off, and that should give buyers a lot more confidence to lock their loans. The Fed will be careful not to say or do anything that has a chance of upsetting the apple cart for the foreseeable future. In fact, the Fed has ramped up the programs they already have in place to help areas of economic stress that have arisen and may arise going forward. For you as a potential home buyer or refinancer, it is amazing news that the Fed signaled that interest rates will be at zero until they are sure we are out of this economic overhang from the virus. As a result, it’s a great time to reach out to your mortgage professional and stay on top of exactly what is going on in the market. Whether or not we can win your business, we are happy to be an amazing resource in your home buying journey.
Are you considering a Forbearance on your mortgage even though you may have considerable assets or equity in your home? Please understand the impacts of Forbearance on your financial future before making this critical decision.
There has been a massive refi boom over the last month due to low rates, so you’re wondering, “Should I refi too? Will rates go lower?” If you go look at rates now, it’s likely they won’t be as low as you expected. Not only are we going to explain why, we’re going to show you why NOW is the time to refinance because rates are set to go UP!