US Mortgages rates marked another record low, boosting the $35-T housing market, a very bright spot for the economy.
The average for a 30-yr fixed loan fell to 2.88%, the lowest in nearly 50 yrs of record keeping by Freddie Mac. It was the 8th time since the C-19 coronavirus hit that rates have marked a new low.
The previous record was 2.98% last month, when borrowing costs fell below 3% for the 1st time.
The lower rates are “giving potential buyers more purchasing power and strengthening demand,” the Chief economist at Freddie Mac, said Thursday.
The record-low rates have bolstered home prices and fueled a dramatic housing recovery in an economy battered by the virus chaos.
“This is definitely helping affordability,” said the Chief economist at LendingTree. “It is also attracting a lot of people into the market who otherwise might not have been so quick to act.”
The fall borrowing costs comes as the Fed holds its benchmark rate near Zero and buys mortgage bonds as part of its plan to stimulate the economy.
Credit standards tightened as mortgage processors they work through the flood of business, but borrowing could drop even more.
As they have more capacity available, their quotes will become more competitive. We could see lower rates on average as well as lower rates offers in the marketplace.
Thursday, major US stock market indexes finished at:
DJIA+185.46 at 27386.98, NAS Comp +109.67 at 11108.14, S&P 500 +21.39 at 3349.16
Volume, Trade on the NYSE cam in light at 791-M/shares exchanged.
Heffx-LTN overall technical analysis for the major US stock market indexes is Very Bullish in here.
- NAS Comp +23.8% YTD
- S&P 500 +3.7% YTD
- DJIA -4.0% YTD
- Russell 2000 -7.4% YTD
Gold + 20.10 +1.0% at 2,069.40oz
WTI Crude Oil -0.29 -0.7% to 41.95bbl
.DXY -0.2% to 92.72
Strong: CommServices, IT, Consumer Discretionary
Weak: Healthcare, Materials, Financials, Energy
Moving the Market Mega-caps powered market higher
Initial claims for the week ending 1 August off by 249,000 to 1.186-M
Looking Ahead: Investors will receive the Employment Situation Report for July, Consumer Credit for June, and Wholesale Inventories for June Friday.
Have a healthy day, Keep the Faith!