Mortgage Market Update 5-18-20

Weekly Market News Update 05/18/2020 – 05/22/2020

April Retail Sales fell 16.4%, the lowest month-over-month number since reporting began while the NY Empire State Manufacturing Index fell 48.2 after -78 in April. May Consumer Sentiment will be released at 10:00 – we expect a bad reading here.

Despite a pretty sharp in stocks this week and a host of negative news, Mortgage Bonds have not been able to move meaningfully higher. Remind clients the Fed is buying fewer bonds and the 10-year yield has only closed beneath .60% a couple of times ever. In the absence of a move beneath .60% on the 10-year yield, Mortgage bonds won’t push another leg higher – meaning rates can’t improve much further.

Oil prices continue to push higher with WTI oil near $29/barrel as the market looks ahead to future higher demand in the coming months as countries slowly reopen.

Even the mortgage program been limited, but the rate for those programs available now hit another low point, if you able to qualify, should start now to take benefit of this low rate.

For the best situation, the rate will be as following: for primary home purchase and refinance only, some others restriction apply.