July 23, 2020 | Market Update

Market News 7-24-2020

Mortgage Market Update

Reopened Homes

As parts of the U.S. economy reopened in June, sales of previously owned homes went up 16.4%. A sales slump of 9.7% in May reflected weaker contract signings during multi-state shutdowns in March and April, according to the National Association of Realtors.2

Rising Refis

Mortgage refinance originations aka “refis” surged in the first half of 2020 as a result of the low mortgage rate environment. Expect to see refis to stay at high levels for the full year as mortgage rates hold steady at all-time lows. Freddie Mac predicts refis will reach $1.9 trillion in 2020 then decline to $1.3 trillion in 2021.4

Sources: 1Wall Street Journal; 4Freddie Mac