Stocks are making a breakout to the upside, as they look to challenge the levels last seen on June 8th. The stock market seems to be less concerned about the growing numbers of Covid cases as time goes on. Rather than focus on the economic risks associated with the pandemic, investors are choosing to focus on the strengthening economic numbers. Although the base line from which we are seeing improvement is well below the worst numbers ever reported, growth is progress and investors seem to remain assured that the US economy will be back on track by the 3rd quarter of 2020.
Black Knight, a real estate and mortgage tech firm, released a market report claiming that 90% of qualified borrowers with sufficient equity in their homes are currently able to lower their rates and see lower monthly payments. Black Knight estimates the pool of qualified refinance candidates is around. of 13.6 million properties with a potential average monthly savings of over $200/ month. This is great news for consumers who decide to act fast before demand surpasses lending capacity and we see rates rise.
The bond market deteriorated slightly over the weekend, even with increasing talk of states increasing COVID restrictions. The market is completely reliant on state governments reaction to the number of increasing cases across the country.
With increase in demand and vast uncertainty in the market, we hold a locking bias.