September 16th, 2019 12:02 PM by Richard Sardella MLO.100007700/NMLS 233568
Rates At a
(by Sigma Research)
still rules as safest long-term retirement investment in new survey
Americans are asked their opinion about investing and a large chunk
of them agree, it’s something worthy of note. According to a study
done by the online magazine Sophisticated Investor, a
cyber-publication dedicated to providing insight and analysis on a
variety of investment topics to investors worldwide, real estate won
out as the safest investment.
aged between 35 and 65+, examined a number of investment options they
consider to be the safest for long-term retirement investing, including
real estate, stocks & bonds, bank savings accounts, fixed
annuities, precious metals and U.S.-backed securities. The survey
found that 22.4% of all respondents selected real estate
as the safest long-term investment for retirement with a higher percentage
resulting from the 45-54-year-old group (25.1%). A press release by
Newswire about the study says, “Given the current turbulent state of
the financial markets and the global economy, the average American
investor seems to be leaning towards more secure long-term investment
options for retirement and real estate is currently viewed as the top
choice in that regard.”
spokesperson for Sophisticated Investor goes on to say, “Real
Estate has come a long way since the last financial crisis where
confidence in this asset class hit rock bottom. The real estate
markets have been showing consistent positive results all over the
country, and that could explain why Americans have such a positive
outlook on this asset class.”
bonds came in second at 18% and interestingly enough, when
demographic filters were applied to the survey results, factoring
young investors, between 35 and 44-years-old,
19.5% indicated this investment option was the safest with
an even larger share of them being females. Gold and silver bullion
garnered only 10.6%, yet when demographics filters
were applied, males were the largest group voting for these metals as
the safest long-term investment for retirement. Precious metals
are usually considered safest during times of economic crises.
the rear was U.S. Treasury issued securities at 9% — surprising
in that these have long been the bastion of safety and security amid
the turbulence of financial markets.
Mortgage Rate Summary
and Government (FHA and VA) lenders set their rates based on the
pricing of Mortgage-Backed Securities (MBS) which are traded in real
time, all day in the bond market. This means rates or loan fees
(mortgage pricing) moves throughout the day, being affected by a
variety of economic or political events. When MBS pricing goes
up, mortgage rates or pricing generally goes down. When they
fall, mortgage pricing goes up. Tracking these securities
real-time is critical. For more information about the rate
market, contact me directly. I’m among few mortgage
professionals who have access to live trading screens during market
Currently Trending: Neutral
rates are trending sideways this morning. Last week the MBS
market worsened by -132 bps. This was enough to
move rates higher last week. We saw high rate volatility throughout
the week, especially Friday.
Rate Forecast: Neutral
Three Things: These are the three areas that have the greatest
ability to impact your mortgage rates this week. 1) Central Bank, 2)
Trade War and 3) Geopolitical.
Bank: We will hear from 3 of the world's top 5 largest
central banks this week. Our own Federal Reserve will take center
stage. Wednesday afternoon, we will get their interest rate decision
and policy statement. But we also will get their economic projections
("dot plot chart") and a live press conference with Fed
Chair Jerome Powell. The bond market will react to the projected path
of interest rates more so than the actual rate cut (if any). We also
will get interest rate decisions from the Bank of Japan and the Bank
War: The U.S. and China have seen some progress over the
past week, and any further movement will get the attention of
traders. But Europe is also in focus as the WTO looks like it has
ruled in the United States' favor in regards to their claims against
AirBus which clears the way for the U.S. to startup $6 to $10B in
tariffs against Europe. Also, the Mexico and Canada deal is trying to
get through Congress.
Geopolitical: Over the
weekend, a major Saudi oil facility was attacked by drones. Iran is
being accused of initiating the strike. Both the U.S. and Iran have
stepped up the "saber-rattling" over military action.
Brexit is fast approaching, and the demonstrations in Hong Kong are
also on the radar.
Potential Volatility: High
We saw a lot
of rate volatility last week as rates moved higher. Look for
continued rate volatility for the reasons denoted above — especially
Wednesday with the Fed rate decision and Fed Chair Powell's comments.
If you are
looking for the risks and benefits of locking your interest rate in
today or floating your loan rate, contact your mortgage professional
to discuss it with them.
Sardella has been actively managing and providing services in the
mortgage industry for over 27 years. Richard serves on the board of
directors as President of Colorado Home Mortgages Inc.
Report And Disclosure Information
information furnished has been forwarded to you and is provided by
thetbwsgroup only for informational purposes. Forecasting shall be
considered as events which may be expected but not guaranteed.
Neither the forwarding party and/or company nor thetbwsgroup assume
any responsibility to any person who relies on information or
forecasting contained in this report and disclaims all liability in
respect to decisions or actions, or lack thereof based on any or all
of the contents of this report.
record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.