"NO GREAT DISCOVERY WAS EVER MADE WITHOUT A BOLD GUESS." Isaac Newton But even the great mind of Isaac Newton might not have guessed that Bonds and home loan rates would continue on such a volatile course. But let's get bold, and discover what caused the latest rock and roll action in the financial markets, and take a look at what the coming week might have in store.
Forces that effect Mansfield , Arlington and Fort worth Real Estate were certainly at work to keep the financial markets from being at rest, starting bright and early on Monday morning. The headlines brought a quick shot in the arm for Stocks, as beleaguered Bear Stearns is now expected to see $10 per share in their buyout, rather than the previously expected $2 per share. Great news for the troubled financial sector at large, but Bonds got battered hard, as money flowed out of Bonds and into Stocks - causing home loan rates to rise.
But as the week progressed, some dismal news played out, including a plunge in Consumer Confidence and mixed news on the housing market, which pulled the money right back out of Stocks, and into the safe haven of Bonds...helping home loan rates improve again. But like Newton's famous third law of motion, "every action has an equal and opposite reaction" - Bonds and home loan rates changed course again, on better than expected unemployment claims on Thursday. Please go to http://www.tombrewerjr.com/for more information.
Then Friday brought the discovery that Core inflation is perhaps not as hot as previously thought. The highly watched year-over-year core inflation rate was reported at just 2%, as measured by the Fed's favored Personal Consumption Expenditure Index (PCE), and within the bounds of what the Fed would like to see for core inflation. Since inflation is the arch enemy of fixed return Bonds and home loan rates...this news was good indeed, and caused home loan rates to improve once again. Once the dust settled for the week, home loan rates ended up near where they began, before their weekly roller coaster ride.
WHILE THE MARKETS REMAIN HIGHLY VOLATILE AND UNCERTAIN, AT LEAST TWO THINGS IN LIFE ARE CERTAIN - DEATH AND TAXES. BUT THIS YEAR, SOME GOOD NEWS FOR A CHANGE AT TAX TIME, WITH THE REBATE CHECKS MANY HAVE IN STORE. WANT TO BE CERTAIN ABOUT WHEN TO EXPECT YOURS...AND HOW MUCH IT MIGHT BE? DON'T MISS THIS WEEK'S MORTGAGE MARKET VIEW!
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