Correspondent, MLO Jobs; Digital, Trailing Doc; FHA s Foreclosure and Eviction Moratorium Extension Dec 22 2020, 8:28AM
I hope that everyone had a happy solstice yesterday, with a few folks writing to suggest that “It is the shortest day, of the longest year, of our lives.” Given my background in capital markets I am regularly asked how some lenders offer lower rates than others. Freddie Mac’s survey has continues to point to mortgage rates dropping, even when “rates” aren’t doing much. The answer is simultaneously simple and complicated (borrowers can pay plenty of points to buy it down, or the lender calculate the value of servicing differently), and one of my commentaries from earlier this year spells it out well. I encourage you to skim through the “How are Mortgages Priced” section, or pass it along to any MLO pointing at some of the headline-grabbing rates in the market (like 1.99 percent for a 30-year fixed!?!). Mortgage pricing, o
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A new, more contagious covid strain spurred risk aversion at the weekly opening.
US Senators agreed on a historic $900 billion coronavirus relief package.
EUR/USD has bounced from back above 1.2200, the risk is skewed to the upside.
The week started in risk-off mode amid concerns about a new coronavirus strain that surged in the UK, which led to an emergency meeting of EU’s authorities. The greenback rallied throughout the first half of the day, with the negative risk-related sentiment cooling down around Wall Street’s opening. The new covid strain seems to be much more contagious, although reports so far indicate that it’s no more deadly. Even further, the European Medicines Agency said that there’s no evidence that the just developed vaccines won’t work with the new variant.
12/18/2020 3:28:42 PM GMT
A dovish Federal Reserve put the last nail on the dollar’s coffin on Wednesday.
Low volumes and big news may result in some wild movements in the upcoming days.
EUR/USD long-term bullish potential remains intact, 1.2500 seems a likely target.
The American dollar had another bad week, falling to fresh 2020 lows against most major rivals. The EUR/USD pair peaked at 1.2272 and settled a handful of pips below it. The greenback was pressured by an optimistic mood related to Brexit talks and a US coronavirus relief package. The week went by and both issues remain unsolved, although investors are still waiting for positive news in the next couple of days.