As the experience notches in the belt gain in quantity, we have learned the follies of attempting to PREDICT or FORECAST events …. luckily we gave a soft “heads up” that rates MAY be in our corner due to the Corona Virus, and help with longer term Mortgage and other longer term fixed interest rate loans ….
Freddie Mac Reports Lowest Mortgage Rates EVER
According to Freddie Mac….
“The average 30-year fixed-rate mortgage hit a record 3.29 percent this week, the lowest level in its nearly 50-year history. ” 3-5-20
Here is the deal…. rates fell AGAIN in the most recent week due to fears of Economic slowdown from the Corona Virus…. but maybe TOO FAST for Mortgage and other longer termed Fixed Rate loans to adjust … On Friday, after the above rates were calculated, the 10 year Treasury, our guidepost for rates, dropped another 22 Basis Points or almost another 1/4 point …..
Far right, the 10 year treasury yield fell like a rock as fear stoked investment from across the globe…. yesterday for the first time it took a breather as bonds fell and rates rose…no matter, these are Low Low Low rates!
Reach out to your bank, Mortgage Broker, or other refinancing officer, and get your documents in order … begin the qualification process but WAIT (days, not weeks) just a bit and check with your loan professional before locking that rate as it is likely the recent drop in rates has not yet dripped through the loan system…. hopefully better loan rates may be in our very near future…
Here is your friendly reminder on Refinancing or not:
“Think 18 months cost break even – We like to have the saving from the refinance cover the cost of the refinance within 18 months – i.e. Person with $30k mortgage at 5% probably would not need to refinance to 4%, but a $3 million mortgage may be smart to refinance from 4.25% to 4% or the like, if the numbers work out.”
Here is the complete Post which contains 11 items to remember when refinancing!
Take advantage of what cards we are dealt!
Have a Great “All Time Low Rates” Day!
John A. Kvale CFA, CFP
Updated Market Thoughts and Two Corona Resources … Spring Break …Office Hours Next Week
While we have fun in our writings here, the real reason for this venue is for times like now!
Over the recent week there have been a number of events occurring that are causing Capital Market jitters…. here are our updated candid, serious, thoughts.
Market Update and Corona Resources
The cancellation of most sporting and almost any other group events has sent chills down many, and has filtered into the Capital Market movement –
“Cancellation of almost all sporting and group events!”
“Capital Markets are really jumping around, and have dropped in value!”
Our Best Corona Resources
In keeping you on point two above, we feel it is important you stay informed… as such we have the following two best of the best websites for Corona Virus Tracking…
Johns Hopkins Dashboard – Mentioned earlier- This is great for tracking specific geographic areas and we are closely monitoring the chart in the far right lower corner for a leveling of growth… this site is updated less frequently but daily at least
Worldometer Corona Tracker – This is updated constantly and give you an almost live feed of information, although not as pretty format as the above…
Blending these two will give you a good, comprehensive view of what it going on… IF YOU WANT TO FIND OUT… all of us may not!
We have no idea how long this will last and we have no idea what Capital Markets will do… no one does at this time.
In time, this will pass… when the all clear bell rings, Capital Markets will likely be much higher as relief is priced in quickly!
Careful on your reading or listening in-take… the most EXTREME predictions tend to make the headlines!
Office Hours and Spring Break
Accomplishments for the year continue as next week is Spring Break for the school bound 12 year old, who was also part of the early year goal to spend more time….
Careful when you give them the go ahead on Spring Break Wishes…grrrr
Current the two of us are out of town, in a warmer place that would accommodate the two dogs… with other family members arriving soon.
We will be in and out of the office next week, but fortunately have good Wifi in our location!
Sorry for the HEAVY post today, but wanting to give you our best and candid thoughts!
Have a Great Friday!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Investing/Financial Planning, John Kvale, Market Comments, Personal
Tagged Corona Virus, Fight or Flight, Johns Hopkins, Worldometer