Skip to Main Content
Carrington Mortgage Services, LLC
Skip to Main Content

Three Market Movers This Past Week

December 7, 2020

Last Week in Review: Three Market Movers This Past Week

1) Stimulus Talks Are Back
The big news this past week was the renewed stimulus talks and the "chance" that we may see a $900 billion stimulus bill included in the government funding package this month.
Up until now, both political parties have been unable to agree on a stimulus package. In addition to the political pressure on both sides to come to an agreement, there are two deadlines Congress has "chances" to get this deal done.
By December 11, Congress must come to an agreement on a funding bill to avoid a government shutdown. As mentioned, we may see a stimulus package included in this funding measure.
If Congress misses this window, they have until December 21 before Congress goes on recess until year-end.
Stocks and rates have been behaving like a deal will get done with both moving higher.
2) Vaccines on the Way
Markets are forward-looking and both Stocks and rates have been rising on hopes and optimism that mass vaccine distribution is just around the corner.
In addition to several vaccines already showing high efficacy rates, there are many more vaccines and therapeutics in the pipeline. Continued good news from vaccines and therapeutics will be a tailwind for Stocks and rates, pushing them higher. The opposite is also true.
3) COVID-19 Cases on the Rise
The rise in COVID-19 cases, hospitalizations, and deaths is a major concern. Even though markets are forward-looking, the uncertainty and threat of more shutdowns is limiting the rise in Stocks and rates. The tug-of-war between vaccine hopes, rising cases, and uncertainty will continue to be a major driver for the next few months. Remember what Fed Chair Powell said back in July, "The path of the economy will depend significantly on the course of the virus." This statement has aged well several months later.
Bottom line: Rates remain right at historic lows, per 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.


Equal Housing Opportunity An Equal Housing Opportunity Lender. Copyright 2007 - 2024 . Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200-A, Anaheim, CA 92806. NMLS ID # 2600. Toll Free # 800-561-4567. All rights reserved. Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines.  Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site:

The content of this website is intended for licensed third party originators or brokers only and may not be duplicated or disseminated to the public. Carrington Mortgage Services is one of the leading wholesale mortgage lenders.

Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram