The Bullet Points 7.10.2020

  • Will There be another market selloff?

    From the middle of March to the beginning of April, there was extreme volatility in the stock market. With uncertainties due to the Coronavirus and a “second wave”, will we see a replay of the selloff? Join Barry and Steve as they provide some insight on what we have been sharing with our clients during this unusual time.


  • Mortgage Demand Spikes

    According to the Mortgage Bankers Association's index, which is seasonally adjusted, mortgage applications to purchase a home rose 5% for the week and were 33% higher than a year ago. As home prices continue to accelerate, low mortgage rates are granting buyers relief. According to CNBC, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $510,400 dropped to 3.26%. In addition, the average purchase loan size increased to $365,700, which is an all-time high. Applications to refinance a home loan rose only 0.4% from the previous week, but are up 111% from a year ago. If you are looking to purchase a new home, or are considering refinancing, please feel free to reach out to us here, or call 615-370-4040. We'd love to help you walk through all of your options.

  • Service Sector Rebounds

    After seeing its lowest reading since March 2009 in April, the Institute for Supply Management said on Monday its non-manufacturing activity index jumped to a reading of 57.1 in June. According to Reuters, a reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity. Economists had expected the index to increase to a reading of 48.9 in June. This report followed the ISM's manufacturing survey last week that showed factory activity rebounding to a 14-month high in June. While these numbers are impressive, July's data may be negatively impacted by several states' decisions to scale back or pause re-openings. We will continue to keep you updated as the data unfolds. 


  • Uber Purchases Postmates

    On Monday, Uber announced it had bought food delivery service Postmates for $2.65 billion in stock. The deal will combine the fourth-largest food delivery service with Uber Eats, which trails DoorDash in market share. The companies said Uber intends to keep the Postmates app running separately. After the announcement, Uber said it is confident that the acquisition will help it become profitable by 2021. "We're very confident we're going to get to profitability next year and we have enough of a diversified portfolio to make that statement with quite a bit of confidence," Uber CEO Dara Khosrowshahi told CNBC on Tuesday. Uber's stock jumped 7% on Monday as the news of the purchase became public. 

 

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