November 20th, 2020 12:08 PM by Eric Fang
Stocks, Bonds, and rates are responding to the tug-of-war playing out
between vaccine hopes and the rise in COVID-19 cases, along with
Pfizer was out this past week saying its vaccine has a 95%
effectiveness rate. Moreover, the firm says they will have 50 million
doses available before year-end and as much as 1.3 billion doses
available in 2021.
On top of this, Moderna has a very effective vaccine and there are
dozens of firms ready to deliver additional doses and therapeutics.
Stocks and rates have moved higher because both are forward-looking.
Yes, the rise in cases and hospitalizations is a concern, but at the
moment the markets are looking four to six months down the road and
there is hope that with a high vaccination rate we can return back to
normal sometime in 2021.2)
Single-family Housing Starts showed the highest reading since 2007!
Historically low interest rates and shifting demand to move to the
suburbs are the drivers.
The main challenge for builders is keeping up with the demand.
Available lots and decreased availability of supplies are headwinds for
One thing is for sure: If land and materials are scarce, expect new
home prices, currently averaging $326,000, to continue to climb.
Bottom line: Rates hit historic lows, as reported by Freddie Mac,
this week. With a vaccine and more stimulus on the way, it may be
difficult to see rates improve much, if at all. If you or someone you
know would like to talk about the incredible opportunity, please contact