It's an early morning Financials this week so Friday may end up a little different by day's end.
 
The week is ending with slight improvement to bonds and mortgage rates as the DOW drops 134 on Thursday and early Friday indicators are pointing to a weak opening.  The bellwether 10 year bond dropped into the low 1.9% range Thursday as mortgage rates improved slightly, dropping back down into the very low 4% range.  Early Friday however has the bond off 10/32s pushing up towards the 2.0 barrier.  Everything is based upon the uncertainty in Europe as Spain is now becoming a concern.  Underlying much of the rise in Spain's bond rates is fear that the Euro itself may not survive and Friday we saw the ECB step in to help prop up Spain.  This may help short term but the ECB has definite limits to how many countries they can support.  The pressure for the European Central Bank to start printing money is increasing daily and with it comes inflation fears - not good for interest rates.   As we've discussed before, the markets don't like uncertainty nor inflation and the collapse of the Euro as a currency, the potential for the
ECB to start printing money and the limits of the European central bank all definitely fall under the heading of huge uncertainty. Meanwhile it helps the US as we limp along with a recovery that just can't seem to find any traction. 
 
At home little of importance is happening, keeping the focus on Europe. Reports of foreclosures being up or being down are readily available. Bloomberg is investing a lot of ink bashing Newt Gingrich for his contracts with Freddie Mac but somehow the fact that he reported a $300,000 fee in one year versus Bloomberg's reported $1.6 over a number of years and all of it was a number of years ago doesn't seem to matter to Bloomberg.  Their reports all seem as though he took the money recently.  I guess they need to fill space with some report.
 
I don't expect any big changes in the market today but then I've been wrong before. 
 
Have a wonderful weekend.

Jed Marquis
 
"There's More to a Mortgage than the Payment!"
 
Colorado Capital Mortgage
 
Direct 720 833-7964
Cell     303 885-1532
Apply online at:  www.CallJedMarquis.com