Pete Boyer, Realtor

A Look Into the Markets Many were expecting uncertainty and chaos emerging from Election Day, and those people were not disappointed. At the time of writing this, we do not have an official call on who will be the next president of the United States. However, even without knowing who the president will be, Stocks skyrocketed, and Bond prices soared, causing rates to decline.... What caused such a market reaction? Here are three things the markets told us about Election Day: It appears we may have a split Congress in 2021 as Republicans may maintain control of the Senate (at least as of this writing). This balance of power will likely lead to more gridlock in Washington D.C. over the next couple of years. This means no radical changes within the economy as it would be hard for Congress to agree on any new policies. Stocks rallied on the notion that any meaningful corporate tax hike would be unlikely. At the same time, both Bonds and rates also did well because they too embrace a government stalemate. The forthcoming stimulus package just got smaller. With a split Congress, expect the next stimulus package to be quite a bit smaller than previously anticipated. We believe and hope we may see targeted stimulus over the next couple of months. Bonds like a smaller stimulus package as it means less new Bond supply, less inflationary pressure, and less aid to the economy. The Fed is not going anywhere. A split Congress makes it difficult to get big fiscal plans passed. This means the Fed may be called upon to do more to help grow the economy and is not likely to hike rates any time soon -- possibly years from now. And this is another reason why Stocks skyrocketed higher this week. This past Thursday, at the Fed Meeting, they reiterated their commitment to buying $120 billion worth of Bonds each month to help keep long-term rates, like mortgage rates, low. As the old saying goes, "Don't fight the Fed." They are committed to helping promote maximum employment and economic growth, which Stocks love. Bottom line: The backdrop for housing looks amazing and the Fed will continue to support the economy alongside fiscal stimulus from the government. If you or someone you know would like to talk about the incredible opportunity, please contact me. Looking Ahead Next week we have big stories to follow including election results, the status of COVID-19 cases here and abroad, and the market impact. The Bond market will have to deal with another large round of Treasuries being auctioned into the market. These new Treasuries are being sold to pay for the huge stimulus measures enacted.

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Thank you everyone for taking the time to view and like my page! Real estate is still selling! If you are a buyer, interest rates are near historic lows! https://www.cnbc.com//homebuyer-mortgage-demand-spikes-to-|linkedin&par=sharebar

A Look Into the Markets This past week, Freddie Mac reported mortgage rates hit the lowest in U.S. history 3.13%. The improvement in rates is a direct result of jobs returning, lowering the risk of mortgage default, coupled with increased competition forcing the industry to "sharpen" pricing. ... What happens next for rates? We are watching fear versus hope play out again and the coronavirus is taking the headlines. A spike in cases and hospitalizations in several "re-opened" states is causing fear, anxiety, and uncertainty, which Stocks hate and Bonds and interest rates love. On the other side of the coin, there are many positive, optimistic, and hopeful reasons why Stocks remain elevated and are limiting the improvement in rates. These include: States and businesses re-opening. Fed stimulus continuing to support Stocks and Bonds. Low rates helping homeowners and fueling consumer spending. Pent-up demand. The savings rate hit 33%, with many Americans staying home and just starting to get outside. Homeownership demand and housing is doing extremely well and will add to the economy. Additional Treasury and administration stimulus will be passed to underwrite the economic recovery. Bottom line: With home loan rates at historic lows, housing demand increasing, and many positive forces at play, today makes an incredible time to lock at the best rates ever. If the positive forces mentioned win the day and a second surge in cases doesn't reemerge, rates may not improve much further, if at all. Finally, remember that the 10-year Note yield has not moved beneath .60% for any sustained time during the darkest days of COVID-19. This means that in order for rates to improve much further, things may have to get even more uncertain than those times. If you or someone you know has questions about home loans, give me a call. I work with several experts in the mortgage industry.

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https://solarquoteca.com Anyone who is looking to add solar to their home, please take a look at Solar Quote. I know Jordan personally and I know people who have had Jordan perform solar work for them. Jordan will answer your questions. You won’t find a better value in the solar market. Installation - ... Cleaning - Give him a call today!

This is from my good friend Bobby Campos at Benchmark Mortgage. As the unofficial start of summer begins with the Memorial Day holiday, there are three trends worth following which may determine how the economy moves past the coronavirus. The reopening. Most states have begun to open up in some form. A few states have been open for weeks and have not yet seen a resurgence in cases, which if the trend continues, would be a great proxy for the rest of the country.... Don't fight the Fed. Last Sunday on 60 Minutes, Fed Chairman Powell reiterated that the Fed will do whatever it takes to help underwrite the economic recovery. If the Fed, Treasury, and administration continue to throw every resource necessary to help the economy, it will likely work. American spirit. We are seeing incredible increased demand in online shopping, DIY projects, and more. It seems reasonable that American spirit and optimism can continue to rise as we enter the summer months and states gradually reopen. When you couple American spirit and states reopening safely, along with continued Fed support, you have all the ingredients required for an economic recovery. Let's see what the next few weeks bring. Meanwhile, home loan rates are at all-time lows and the housing market continues to see buying demand. On the other side of the virus, we may very well see a strong housing market for all the reasons above, plus the pent-up demand created by increased household formation. Better days are surely ahead.