What goes down must come up?

The end of last week we saw the bellwether 10-year bond lead mortgage rates down to record lows, as fears of a European collapse escalated and the U.S. reported severe weakness on the jobs and unemployment front. Three days later, with no new economic news and little decisive action in Europe, U.S. stocks rallied some 286 points on the DOW and the bond yields rebounded from their lows of 1.45 percent up to 1.66 percent - yields higher than before all the bad news. All this on pure speculation that the governments of the world will take steps to stimulate the economies or the world. The investors appear so driven to drive the world’s stock markets up that no concrete news is counteracting documented bad news. 

Meanwhile, mortgage interest rates didn’t follow bond rates down the entire way and so far aren’t over shooting on the rebound.  We’ll probably see reality tomorrow when the  jobless claims report comes out. Meanwhile, 30-year fixed rates have bounced back to the 3.75 percent to 3.875 percent range while 15-year remains at 3.25 percent.

We’ll see if the world makes sense by Friday.

Jed Marquis
Premier Lending, LLC
"There's More to a Mortgage than the Payment!"
Direct 720 833-7964
Cell 303 885-1532
Fax  303 484-4472
Apply online at: www.CallJedMarquis.com