More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the National Bureau of Economic Research: “A
Unfavorable ECB Comments
Over the past week, both domestic and foreign events worked against U.S. mortgage rates. These included hawkish comments from the European Central Bank (ECB) and stronger-than-expected U.S. economic data. Mortgage rates ended the week higher.Demand for bonds, including mortgage-backed securities (MBS), from central banks around the world has been a major factor in driving mortgage rates to these very low levels. As a result, investors are very sensitive to any change in policy that may reduce the expected number of bond purchases. On Tuesday, investors were told of a possible policy change at the ECB along these lines and mortgage rates rose.An unnamed official at the ECB said that a “consensus” was being put together to gradually wind down the ECB’s bond-buying program. The plan would be similar to what the U.S. Fed did to end its bond-buying program. No specifics were given as to its start time. It's not known when the announcement about the timing will occur, but when it does, we will likely see a larger reaction in global markets. The next ECB meeting will take place on October 20.In the U.S., two major recent economic reports both rebounded much more than expected from weak readings last month. After falling in August to the lowest level since 2010, the ISM national services index rose in September to the highest level since October 2015. The ISM national manufacturing index also increased. These two reports are key indicators of economic activity watched closely by the Fed.Source: MBS Quoteline
David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is an 18 year resident of the New Jersey Gold Coast, with the local knowledge ....
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What Is Coronavirus?COVID-19, better known as coronavirus, is a viral infection with flu-like symptoms. The virus is primarily transmitted via respiratory droplets, such as when an infected