The bond market determines which way rates are headed. The more traders buy bonds the lower rates go, and conversely the more they sell the higher rates go. Each day traders take in news from all over the world to determine future economic prosperity. If there is good economic news, for example people are buying products and employment is strong, then traders tend to buy stocks and sell bonds. Bonds are a safe haven per se and their price does not move significantly with rising stock prices. However, if there is news of something that can impact the prosperity equation in the future, traders will buy bonds to preserve their investments. They will get out of stocks that will fall during uncertain or hard times. The Coronovirus is such an event. At first, many felt it was an isolated outbreak. As news grew that full regions in China were being shut down, then traders started to see the impact to the China’s economic engine and to other areas that began to have infection. The spread is halted by preventing large groups from getting together, whether in factories, work, school or travel. There is an economic slow down coming. Now with infections in many countries the market has moved from stocks to bonds causing rates to plummet to the lowest levels ever. The markets will go thru wild ups and downs. Rates are moving up and down as the bond market tries to figure out the extent of the slow down and what the Federal government can do about it. All in all, we expect rates to move lower. If you are looking to buy, it is a great time to call us. Let’s go over a strategy to take advantage of this market movement.
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Testimonials
Patient & Helpful
Tammi was very patient and very helpful throughout the entire application process. Being a first-time home buyer I didn't know a lot of this which made me frustrated but I was able to get approved and now I am a homeowner thanks to Tammi!
— James C.
No Pressure or Stress!
Tammi Lewis made my home buying experience very easy. I felt no stress or pressure. Tammi was with me every step and made sure I understood everything with detailed talks. My credit score was low and Tammi advised me how to raise it. So that the Loan process would be approved with no problems. Any one know that wants to buy their first home I am recommending Tammi Lewis and First Home Mortgage.
— Charlie F.
Professional & Timely
Rob made sure my experience as a first time home buyer was smooth and painless. Very professional and got things done in a timely manner. Could not have asked for more!
— Samantha J.
Great Experience for a New Homeowner
Rob was at all times, willing to go over the numerous pages of information with me. I am a new homeowner and had many as this was my first time navigating the home-buying waters. He explained things to me in a way that I understood and got me all of my documents in a timely and efficient manner. I enjoyed working with him and would refer him to anyone who is looking.
— Erica F.