Mortgage Market Report for Wednesday April 2, 2008
Providing market turmoil was a Congressional Joint Economic Committee hearing. Bernanke stated the economy may be headed into a brief recession during the first half of this year, but he was more optimistic about the economy over the second half of the year as the full effects of the Fed's interest rate cuts begin to stimulate economic growth.
Bonds were hit with some additional selling pressure at this point and stocks were cruising along a little higher until the release of the Energy Department's Energy Information Administration report of an unexpected decline in gasoline inventories due to higher demand. This news did not sit well with the stock market as it suggests retail gas prices will increase to levels this summer that will create a far greater financial burden on consumers while impacting corporate earnings.
As stocks then retreated on this news, our benchmark mortgage bonds staged a late session rally and bounced back from a deficit to reclaim the 50-day MA support level.
Thank you for listening to http://www.contactherrick.com/ We will have another report for you, your family, your friends and your important business contacts tomorrow.
A quote from Will Rogers
"The best doctor in the world is the veterinarian. He can't ask his patients, what is the matter?-he's got to just know."
Roger Herrick
California Mortgage Broker
www.ContactHerrick.com
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Hi Roger,
Thanks for the update. Have a great week. Michael A. Caruso