This Article Is About Stock Market Correction Drives Mortgage Rates Lower
The Dow Jones Industrial Averages and all other market indices opened lower again due to fears of the coronavirus epidemic. Never in history has the markets reached an all-time high and plummeted into correction territory. The stock market is considered to be in correction territory when it drops 10% or more. We are past the 10% drop. Yesterday, the Dow dropped almost 1,200 points towards the end of the trading day. Just two weeks ago, the Dow Jones hit an all-time historic high. Consumer fears are what is driving the markets. Many analysts and experts are predicting this market sell-off may yield zero growth for U.S. companies. Investors already factored in interest rate cuts by the Federal Reserve Board. If the Fed does not cut rates, we may expect another major sell-off. The good news for the housing market is the stock market correction is plummeting mortgage rates. As the stock market correction continues, mortgage rates are expected to continue dropping. The Trump Administration is trying to avoid a major panic and has put in place multiple emergency coronavirus task force. President Trump put Vice President Pence in charge of the coronavirus epidemic. Unfortunately, a handful of Democrats like Nancy Pelosi, Chuck Schumer, Adam Schiff are taking advantage of this international coronavirus to put fears for selfish political benefits for the Democrats and blaming President Trump. Pelosi, Schumer, Schiff and a handful of other Democrats are trying to capitalize the coronavirus fears to win the 2020 election, especially kick President Donald Trump out of office. In this article, we will discuss and cover how the Stock Market Correction Drives Mortgage Rates Lower and may benefit homebuyers.
The Stock Market Correction Caused By Fears And Panic
The main reason for the 2020 Major Stock Market Correction is due to fears and panic. All numbers and economic data released this week came in better than expected. However, the Stock Market Correction was caused by fears and uncertainty. Never before in history has the Dow Jones tanked 1,200 points in a single day. This week, we have so far seen the Dow Jones has seen a 4,000 point drop. Today, the market started with an 800 point drop and is currently at a 1,100 point drop. Being Friday and the weekend coming up, there is no doubt another market selloff will be triggered towards the end of the market day. The markets do not like uncertainty. Many investors are worried. Growing worries and concerns about the extent and longevity of the coronavirus epidemic are serious as a heart attack. Press releases by companies of earning uncertainties and warnings have escalated fears of investors. Many communities overseas have shut down their towns and cities and ordered residents not to go outside. Many companies overseas have closed and told their employees to stay home until further notice.
What Experts Say About The Longevity Of The Stock Market Correction
When is the bottom? Will investors who had handsome gains in their stocks and 401 KS lose all their gains? Many so-called experts who are totally clueless are talking out of their asses and telling people that this is a great buying opportunity. This may be so. However, the Dow Jones can drop below 20,000 or further if the fears and uncertainty continue.
Nobody has a crystal ball and can predict the future. However, the longer the uncertainty of the coronavirus is, the more damage it will do to the economy.
What The Market Selloff Means For The Housing Market
Market sell-off is not good for investors. When the stock market sells off and enters correction territory, it generally lowers mortgage rates. Many areas of China are in an idle mode where it is like a ghost town. The economy of China affects the markets of other countries, especially the United States. Mortgage borrowers can expect to see plummeting mortgage rates in the days and weeks to come. However, a prolonged coronavirus crisis will not be good for the economy and the housing markets.