Market Volatility and Mortgage Rates - should you refinance?

We hope everyone is staying safe and getting to enjoy summer at least somewhat - even if things are quite a bit different.

The markets have certainly started being a bit nerve wracking again. There are definitely risks out there and a lot of headlines that might cause concern if not panic. In the last 3 months, expectations have gone from complete uncertainty to optimism about getting through this and reopening back to a lot of uncertainty about rising cases and concerns that we're going to be shutting some things back down. Despite all of that - I would certainly argue that while things are certainly different, the economy will continue to recover and get to whatever our "new normal" is for now. There are still always opportunities present - and many areas that have actually benefited from this - things like e-commerce, communications and technology. Certainly employment will continue to be an issue in industries like travel, hospitality and restaurants, but other areas will adjust and move on. While the market averages did bounce back very quickly - the large majority of that was these industries that aren't being severely hurt by current circumstances - many more affected stocks are still down 50% plus from their pre-crisis levels. So don't be deceived into thinking that the stock market has been too strong given the circumstances. I certainly can't say that there isn't risk of more downside - but I also know that emotions have moved back down to a pretty pessimistic outlook. I would expect optimism to return at some point again - and still do believe strongly in our scientific and medical professionals to get us through this. As always - if you are concerned about your risk exposure - please call and schedule a conversation with me.

One other thing I want to make sure to point out - mortgage rates have absolutely plummeted. For those of you with a mortgage - assuming that you still have steady income and good credit - this is easily the best refinance environment we've ever had!! I was looking at rates this week - and found I could get around 3% on a 30-year loan, and could actually get 2% on a 15-year loan (if I pay 2 points - which can make sense if expecting to keep a loan long-term). While we cannot do loans in house - I can definitely help you through the process and give advice on your situation and which loan terms make the most sense. For anyone with an advisory relationship - I more than likely have details on your current loan - but it is not in a format that I can easily sort for those of you with the most to gain from refinancing - so please reach out to us if you think you may be a candidate.

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change with or without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.