Health & Fitness
Mortgage Minute: Is the S&P 500 New Record High Good For Home Loan Rates?
With a new record closing high for the S&P 500, stocks are now ready for a sell off.
The S&P 500 looks like it will close the day with a new record high. With 30 minutes left in the trading day, the index currently sits at 1,570 (5 basis points higher than it's previous closing high of 1,565).
This was due to a quiet Eurozone and no other major economic news having been released today. Also helping to fuel the ride was the fact that many investors had jumped out of the stock market prior to Good Friday and the Easter holiday afraid of what possible news could come out from across the pond and cause a panic in the markets before they opened again on Monday. Since there was no bad news, they seem to be jumping back in with both feet.
Tomorrow will be another quiet day for economic news, so I expect a sideways trading pattern for the most part. Thursday on the other hand is the all important "Jobs Report" with 200,000 new jobs being expected in the economy. If that number is reached, or is even a little better, there should be no big move in either direction for stocks or mortgage bonds. However, if the mark is missed by say 25,000 or more, that could be the sign for investors that the cap has been hit in stocks and it is time to take a pull back into mortgage bonds.
Find out what's happening in Santeewith free, real-time updates from Patch.
Mortgage bonds will close the day down around 14 basis points, but there is good support at the 50 and 25 day moving averages that are just below us now. I will be watching for that jobs report very closely, and will get back to you with an update when it happens.
Be sure to watch the attached video to see where rates finished today. If you would like to talk about your specific scenario or needs, please do not hesitate to call or email me directly.
Find out what's happening in Santeewith free, real-time updates from Patch.
This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate, number of points or both. Current interest rates and discount points are subject to change at any time without notice to you. Stated rate examples were calculated using a $300,000 loan amount, 80% LTV and 720 Min Fico at the stated term lengths. Licensed by the Dept. of Corporations under the CA Res. Mtg. Lending Act – 431-0421; Rates and charges in the advertisement do not apply to all loans made by the financial institution.
Rob McNelis
Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
www.robmcnelis.com
