Good morning, It’s Tom Heath with the Heath team at Nova Home Loans. This is our weekly update on mortgage and real estate matters for November 9th, 2020.
Today’s topic is not the one I had planned, but given the current state of the market. I thought I’d give a quick update as this could be a transitional week in mortgage rates. We saw, this morning, the stock market move up very quickly and that will have a negative impact on interest rates.
As I’ve mentioned in the past, I don’t think it will have as much as normal because I think the Federal Reserve will step in to continue to keep rates at a lower level. However, given the news this morning from Pfizer that their vaccine is 90% effective, it sent stocks up quite a bit on activities like theaters, restaurant groups, things that have been severely impacted by the pandemic.
If this holds true, we can start to see a softening of the federal reserve’s position on interest rates. We get stimulus passed in Congress and things move forward in that direction, it’s very possible that we’ve seen the lowest of the interest rates and we’re going to start to move back into a more normal market. It’s going to take months if not years to get there, but we may have been off of the lowest that we have seen that I’m not sure that we’re going to get back to those.
Now, something could change and the markets will react to that. If so, everything I’ve just said is out the window, so I as I’ve mentioned before I’m guessing, but based upon today’s news and the reactions of the market and where things appear to be heading, I personally think we’ve come off the bottom on the interest rates.
Still very low. However, we’re going to start to see rates stay steady, but maybe moving up, inching up, and I don’t think they’re going to be dropping way back down again. Just my opinion. If you have any questions on that, feel free to call me. You can always head over to our web page TheHeathTeam.com! There’s information about mortgage rates, how they’re set, there’s some trend information on there as well. We would always welcome your feedback. So tune in next week for this week’s topic that we were planning to have. Have a great week!