This is one for the history books
Mortgage rates just hit an all-time low.
Well, this is a first.
The new average interest rate on a 30-year fixed-rate mortgage dropped below 3% as of Monday, currently sitting at 2.98%. This is a record-breaking low as the economy grapples with the pandemic situation. On top of this, the 15-year fixed-rate mortgage also dropped 2.48%. These new rates mark the seventh new low since March.
And I’m sure it comes to no surprise when I say that this downtick in interest rates has led to an increase in demand for homebuyers. In fact, many who work in the industry are running into too many buyers and not enough sellers.
This drop-in interest rates isn’t only bringing in new buyers either – it’s also is pushing up mortgage applications from the previous years that didn’t necessarily qualify, bringing even more eager buyers into the mix.
Where’s the money?
This surge in buyers and drop in interest rates has investors eying stocks involved in the housing market. From housebuilders to real estate ETFs, the industry has seen an uptick in cash flow as the housing market continues to swell.
From iShares US Real Estate ETF to Real Estate Select Sector SPDR Fund, investors are sinking their cash into this industry, hoping to reap the benefits of these historically low-interest rates.
But I’m not buying into this hype literally or figuratively.
And here’s why…
How can I get some?
I know it seems like the obvious answer is to join the hordes of investors in the real estate and housing sector. But if I’m honest, real estate is one that I personally won’t be adding to my lineup anytime soon.
But no worries…
While real estate may not be what you’re looking for, I have another investing “safe haven” currently being overlooked…
With interest rates dropping below 3%, the United States stock, especially SPDR S&P 500 ETF Trust (SPY), is the best place you could put your money. The fact is that currently, there is so much money sitting on the sidelines. And this is because the pandemic has caused many to take their money and run as volatility continues.
And with low rates like we’re currently seeing, money managers aren’t looking to tie their money up in one singular sector. Instead, they will continue to turn to SPY. When investing in SPY, it spreads your dollars across all 11 sectors. And even with just one single purchase, you can own a piece of tech, consumer, real estate, and more.
In the Spotlight: This pharmaceutical company
Since the beginning of the pandemic, a vaccine has been the name of the game. And now, a potential vaccine developed by Oxford University and pharmaceutical giant AstraZeneca good be the leader of the pack.
The newest potential vaccine showed a strong immune response in a large, early-stage human trial.
Biotech has been a strong sector for obvious reasons over the last few months, with many competing to produce the highly anticipated coronavirus vaccine. And big names like Gilead and BioNTech have been leading the charge.
But it seems AstraZeneca might have just taken the lead with its newest development, making this biotech stock one to watch in my book.
So, I’ll be keeping a close eye on this, and I’ll be sure to keep you updated.
One Final Thought…
The drop in mortgage rates we discussed above is just one more reminder of how unpredictable the economic landscape continues to be.
While this is great for homebuyers and homeowners, who knows if the next twist the market throws at us will be a positive or a negative?
That’s why my readers have come to rely on the recommendations from my S.C.A.N. trading system.
The steady, safe, profitable recommendations from my Project 303 trading service have come regardless of market conditions, and today’s your chance to secure your spot.
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