Both the bond and equity markets are focused on whether Congress and the White House can agree on a much-needed additional stimulus package. Many businesses are suffering, as are all the employees in public-facing businesses such as restaurants, hotels, entertainment, and travel. Every day we hear of more companies laying off employees. The stimulus will help Americans get to the other side of the pandemic. On the other hand, the pandemic has propelled innovations in new ways to work, which may lead to more efficient business models going forward.
Housing remains on a tear as people exit big cities for less population-dense zones such as suburbs and more rural areas. Super-low interest rates have driven high demand and mortgage activity. However, the 10-year U.S. treasury bond has been rising, approaching .80%. Market trends are impossible to predict due to the many variables at play. The biggest unknown is the intensity and impact of Covid-19 surges this fall.
In the California luxury market, high-end inventory is scarce as the market remains very active, pushing prices upward. We continue to work with our lender-partners to help our clients take advantage of these incredibly low-interest rates on new mortgages and refinances.