Skip to main content

Could A Second Round Of COVID-19 Cause Rates To Dip Even Lower?

Navi Persaud
Jun 02, 2020
Jerome Powell

The economy is slowly creeping back after COVID-19's most impactful months. However, the threat of a second wave still looms and it is one that Federal Reserve Chairman Jerome Powell fears could cause a longer recovery, especially within the mortgage industry.
 
MoneyWise report revealed that Powell is still concerned about the future of the economy and his outlook isn't positive. Much of what has been put forth by Powell, the report said, caused mortgage rates to continue to dip. Now, it is possible that they hit newer all-time lows, which would be good news for buyers and existing homeowners who could save by refinancing their mortgage.
 
"A full recovery of the economy will really depend on people being confident that it’s safe to go out," the chairman said during a recent Princeton University webinar, according to the report. "A second wave would really undermine public confidence, and might make for a significantly longer recovery, and weaker recovery."
 
With the current pattern between Powell's words and their effect on mortgage rates, the report predicts they may continue the downward trend they have been carrying. As of last week, Freddie Mac reported that the 30-year fixed-rate mortgage had hit 3.15%, though, rates sub-3% do exist.
 
Click here to read more about the Fed chair's outlook on the future of the economy. 

 
Biden Appoints Sandra Thompson As Acting Director Of The FHFA

The White House appointed Sandra L. Thompson as acting director of the Federal Housing Finance Agency (FHFA), effective immediately. Her statement reveals that a permanent director will be confirmed in December.

Regulation and Compliance
Jun 24, 2021
Supreme Court Gives Biden Full Control Over FHFA

The U.S. Supreme Court gave President Joe Biden the authority to remove the head of the Federal Housing Finance Agency (FHFA) while dismissing claims from shareholders of Fannie Mae and Freddie Mac.

Industry News
Jun 23, 2021
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021