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Mortgage Rate Update 11/16/20

Hey everybody, what’s up. Sean Zalmanoff, here with your mortgage rate update this week.

If you’ve turned on any news this morning, you know about the Moderna vaccine trial and their amazing results, 94.5% efficacy, so 94.5% effective. Last week, Pfizer came out, we discussed that theirs was 90% effective. For a vaccine to work, they say it needs to be 70% or higher. So both of these results really appear to show that light at the end of the tunnel. The most promising thing or the thing that I take the most from Moderna’s results is theirs does not need to be stored at negative 100 degrees, which is what Pfizer’s vaccine results or not vaccine results but the vaccine actually needs to be stored at.

Last week, when this is out, the stock market shot up, and bonds sold off. We saw some rates increase last Monday. Again, we just talked about that. It was basically back to levels that it was just before the election. We are still trading very, very close to all-time lows in mortgage rates. The great thing about the bond market today was that it did not have a selloff, actually. It’s pretty flat on the day. Stocks are up 400ish points right now, Moderna’s stock’s up. I’m not licensed to sell stocks, just to help you with your mortgage. Don’t go run out and buy this stock right now, though. This is more of a sell the news kind of thing. The stock’s been on quite a tear as this has been going on right now, same thing you saw happen with Pfizer last week. The stock actually sold off a little bit after the initial upswing. Yeah. I’m not licensed to sell stocks. You’re only here to get mortgage advice, but just in case you’re like, oh my God, I got to own this thing.

Anyway, good news all around there. Some other good news in the housing market, you all keep reaching out to my team and saying, “Sean, I’m concerned that housing prices are going to fall.” Well, Ivy Zelman, a big economic forecaster that I follow, just last week, just this weekend, actually, their team released a study, and we are currently building in the United States 16% less homes than what is required to meet demand. If you’re not looking to buy new construction, this still matters to you. I just moved from St. Louis City into St. Louis County, we’re not building a lot of new homes in the city or the county, and if they are building them, they’re tearing them down and rebuilding that way. So not a lot of new construction to where they’re adding to these numbers.

If supply is less than demand, then you’re going to continue to see home prices appreciating. I’ve seen some posts of, “Oh, gee, I just can’t wait until home prices are trading for pennies again, like they were during the great recession.” That really doesn’t appear that’s going to happen. If it was legal to bet on this, I would bet the farm that home prices are going to be stable and continue to rise. I hope they don’t rise massive amounts like they’ve been, but I do believe that they are going to continue to rise. Because as these vaccine results come through, and as people get a vaccine, and if it’s 90 or 94% effective, like the trials have shown, and those trials are monitored by independent people. It’s not just like Pfizer and Moderna saying, hey, we got these results, and here’s where they are. You’re going to continue to see demand in the housing market. Rates are probably low for the foreseeable future. That’s going to spur more demand in the housing market.

If you’re thinking of buying, if you’re thinking of moving, now is a great time to contact my team of mortgage advisors. Speak with an advisor, speak with somebody who can make sure that you are in the best mortgage for your situation, not right now, but for what your goals lay in the future too. Hey, if you haven’t refinanced yet, give us a holler. We want to help you. We want to make sure that you are in the right loan, again, for where you’re at right now and where you need to be in the future. I’m Sean Zalmanoff. I appreciate you all listening and being with me this morning or this afternoon or tomorrow or whatever it is that you’re watching this. If you need anything, holler at us. I don’t know if my number’s around anywhere, so let me just give it to you real quickly, 314-361-9979. We’re here to help you. Peace out you all.

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