Today had some very promising data for the housing market, pointing towards the possibility of a v-shaped recovery.
Here are some facts that came on Monday, June 8th:
- The JOLTS Job Report showed a gain of 2.5 million jobs
- The unemployment rate declined to 13.3% in May, defying forecasts of a near-record 19% reading
- The 10-year yield jumped to 0.94% on that JOLTS report
- Home purchase applications were up 18% compared to the same time last year and up 6% from a week ago
All of these facts above, indicate a much more calm financial market. Both the increase in purchase applications and the fall of some of the financial indexes makes way for a strong housing market. If the economy reopens successful without any virus rebound news, we may have already seen the lowest lows in mortgage rates – only time will tell.
Remember, when looking at interest rates you need to look at where the 10-year yield is because it directly correlates with mortgage rates. If the 10-year yield rises, mortgage rates will most likely rise and vice versa.
We are hopefully for a v-shaped recovery to help our family, friends and clients get back to the world they knew before COVID-19. If you have any questions about your current situation, please reach out to us. We are here to guide you during this difficult time.