The viral pandemic has largely overshadowed politics, but as we get deeper into September, we are reminded that this is an election year. The party conventions are behind us and the debates are agreed upon. The election news cycle and campaign ads are ramping up. Make no mistake, this will be one of the most contentious elections in our lifetime. But what does this mean for the markets, and more importantly, your investments? We will attempt to answer these questions in a thoughtful and objective manner. First, we’ll take a step back and review the current election landscape, and then discuss factors that could decide the election and its possible ramifications. Finally, we will review the potential implications and risks posed by the election.
30-YEAR MORTGAGE RATES JUST HIT THEIR 8TH RECORD LOW THIS YEAR.
CNN Business has the latest news @ http://cnn.it/3gKOo03
GOOD NEWS FOR HOMEBUYERS.Keep in mind that just two summers ago, the average interest rate on a 15-year fixed-rate mortgage hovered around 4%, while the 30-year was in the vicinity of 4.5%. With the average interest rate on these loans at new historic lows, it may be a smart time for first-time buyers to consider making their move.
In other words, it's uncertain how long these historically low rates will last. Keep in mind this article is for informational purposes only. It's not a replacement for real-life advice. It’s always a good idea to consult with your tax, legal, and accounting professionals before considering any changes to your living situation.
GOOD NEWS FOR INVESTORS.Believe it or not, hopeful homebuyers are struggling to find the right property: on July 4, 2020, the inventory of existing homes for sale was 31% smaller than it was in 2019. Even with these market conditions, 61% of respondents to a recent survey felt that buying a home in 2020 was a good idea. This interest in purchasing a new home despite the COVID-19 pandemic may be considered a “coincident indicator” by many. In other words, if consumers feel confident enough to go home shopping, that could indicate slowly returning economic confidence as well.3
GOOD NEWS FOR EVERYONE.Real estate plays an integral role in the health of the economy. Even when considering the many advantages of homeownership, it can be easy to forget that it is one of the greatest sources of wealth and savings for many Americans.4
Whether or not rates will drop even lower is anyone's guess. Even though it seems unlikely, mortgage issuers are dealing with a level of uncertainty that makes it harder for them to judge risk and assess the long-term value of the loans they originate.
1. OCRegister.com, July 16, 2020
2. Realtor.com, July 13, 2020
3. FreddieMac.com, July 16, 2020
4. TheBalance.com, February 10, 2020
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
As of April 15, the Federal Trade Commission (FTC) had received over 18,000 consumer complaints related to the COVID-19 outbreak, with victims reporting losses of more than $13.4 million. We would like to call out a few types of these scams to help you avoid becoming one of their victims. You can find the latest news and updates on the websites for the Federal Bureau of Investigations www.fbi.gov or the FTC www.ftc.gov.
Recessions are a normal part of the business cycle. However, the COVID-19-induced recession was not normal. Social distancing has worked to reduce both the number of cases and deaths caused by the virus, but these same efforts have unfortunately led to mounting economic costs. With some states beginning to ease restrictions, optimistic investors have been looking beyond today’s awful data and focusing on economic recovery.
It’s impossible to prepare yourself emotionally for the unexpected hardships we face in life. A spouse or loved one dies or becomes seriously ill or disabled. You get laid off from your job of 20 years or you’re forced to close your business. A natural disaster or the current national emergency concerning the Novel Coronavirus Disease (COVID-19) outbreak.
These are difficult situations where the future looks unclear. But with a sound financial plan in place, you can take comfort in knowing that not all is lost. You’ll be able to weather the storm because you’ve taken steps to safeguard your assets. Below are some solutions to managing finances in times of hardship.
The coronavirus pandemic has affected virtually every facet of American life and severely impacted the markets and economy. Congress and the federal government have acted to help individuals and businesses get through this difficult time. Most recently, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act on March 27, 2020. The House passed the bill by voice vote earlier that day, and the Senate unanimously passed it on March 25. The $2.2 trillion bipartisan bill, the most expensive legislation ever enacted, resulted from negotiations between Treasury Security Steven Mnuchin and Congressional leaders on both sides of the aisle. The following are highlights of many of the federal relief opportunities created thus far which may benefit you.
Many people struggle every time they open their mail or email. Is this important? Do I need this? Should I keep it? Should I throw it away?