July 2020 Market Update
Updated: Aug 27, 2020
No one could have predicted what 2020 would look like once we were thrust into a global pandemic. News of a historical stock market dig and increasing unemployment created a sense of fear that spread across the market. We didn't know what the next week would bring -- let alone the next month. But as time progressed and things became more clear --the market started to correct itself, and consumer confidence began to return.
That said, we've not escaped the pandemic, and unemployment is still on the rise-- so what is the stock market so strong? In reality, not everyone was suffering during the last few months. There were some big wins for big business. However, when we look at rates-- we can thank the federal government for taking a proactive step in holding down rates. And while the fed adjustments don't always directly correlate with lower rates-- in this case, that seems to be our reality. We are looking are rates that will likely never be seen again. Individuals are obtaining home loans that are hovering around 2.3-2.5%. It's crazy!
It really is a historical time to purchase a home -- especially if this is going to be a 30 yr investment. As we look into the back half of Q3-- it appears that rates are going to hang tight-- but the real questions is regarding how long? If we look at history, it's common for rates to maintain through an election. Meaning, there won't be any major fluctuation until after Nov. But then again, this is 2020, so anything can happen.