April 8, 2020 - Market Update

The Mortgage Bankers Association application stats were released this morning and showed that applications in the U.S dropped to the lowest level since 2015.  The index was down 17.9% with refinances dropping 19.4% and purchases falling 12.2%.  The average 30 year fixed rate fell to 3.49% from last week’s report of 3.82%.  The share of applications seeking to refinance was relatively flat from last week at 74%.

On Tuesday, stocks surged right out of the gates, only to land in negative territory at the closing bell.  The DOW was up over 900 points during the trading session, only to end the day down 26 points to 22,653.  The S&P fell 5 points to 2,659, and the Nasdaq was lower by 25 points to 7,887.  

After 16 hours of talks held by video conference, eurozone officials are struggling to reach an agreement on measures that would provide additional support to workers and businesses devastated by the novel coronavirus.  Finance ministers representing the 19 countries that use the euro currency suspended negotiations on a new rescue package on Wednesday, saying they would reconvene on Thursday.

With a new Conronavirus bill possibly working its way through Congress, the key thing it (and the $2.2 trillion CARES act) must do is help workers stay attached to employers, help small businesses stay solvent as they lose income due to social distancing, and help the vulnerable, healthcare workers and state and local governments.