TheStreet’s Jim Cramer talks about mortgages and shines a light on the rivalry between Tesla and Ford.
Stock futures pointed to a mixed start for Wall Street on Tuesday as traders navigated the uncertainty about how the fast-spreading delta virus variant will affect the economy and comments from Federal Reserve officials about scaling back support.
TheStreet’s Jim Cramer talked about mortgage rates with Action Alerts PLUS senior analyst Jeff Marks.
Mortgage Rates: ‘All Aboard!’
In the week ending Aug. 5, 30-year fixed interest rates fell 3 basis points (0.03 percentage point) to 2.77%. Mortgage rates had risen 2 basis points in the week prior. Thirty-year mortgage rates have risen beyond 3% just once since April 21.
While saying that he’s “a stock person,” Jim Cramer urged people to secure a mortgages even if they have “a free and clear property.”
“It’s a great way to invest,” Cramer said. “Let’s say interest rates go higher. You’re going to be able to invest that money at a better rate.”
But Cramer advised people to move quickly.
“I feel strongly that this is it,” he said. “The train’s leaving the station on mortgage rates.”
Tesla vs. Ford: ‘Beware of the Lightning’
On Monday, Jefferies analysts upgraded Tesla to buy from neutral and raised their one-year price target to $850 from $700 on expectations that carmakers in general will be able to boost their margins as they operate with less but better-allocated capital.
“I think China will be good,” Cramer said as he weighed Tesla’s prospects. “I think our country will be good and that Europe’s good. But the problem is: Will their pickup be as good as Ford’s Lightning?”
Ford unveiled its F-150 Lightning in May and the vehicle is at the forefront of the company’s $22 billion global electric vehicle plan.
Cramer said that Ford Chief Executive Jim Farley said his vehicle is better than Tesla’s.
“He’s been critical of the Tesla vehicle,” Cramer said. “He thinks it’s ugly. A lot of people think it’s ugly, but I think it’s going to be the only thing I’m worried about for Tesla.”
Last month, Ford posted record sales of electrified vehicles over the first half of the year, offsetting a 27% slump in total June sales, which were hit by chip shortages and plant closures.
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