Last week: Stocks surged to cross the 14,000 mark on the Dow for the first time ever. The party was short, just as the excitement started so did a disappointing earnings report from Wall Street and my own darling Google. Suddenly, the Stock that could do no wrong was showing chinks in the armor, and led to fears that other Stocks might follow suit, which caused an across the board sell-off. But every cloud has a silver lining - the money coming out of Stocks was parked over into Bonds. This is fantastic for the interest rate market. Hence, this helped home loan rates improve from levels hit earlier in the week, and end up about .125% better for the week overall.
If Dow 14K was not enough excitement, Fed Chairman Ben Bernanke took center stage last week, speaking to Congress about inflation, housing, and the economic outlook. He stated that although the recent inflation numbers have been moderating, the Fed remains very concerned about inflation. He underscored that they are staying very alert to economic changes and indicators, but based on their continuing concerns over inflation, it is my opinion that there will not be a cut to the Fed Funds Rate in the near future.
This week: So what's coming around the bend for Bonds and home loan rates this week? The economic calendar will be slimmer than last week's, but will include a look at the housing market with Existing and New Home Sales being reported on Wednesday and Thursday. Stocks may also continue to drive the action in Bonds, as investors will again be closely watching Stock earnings reports this week, and making decisions on where their dollars are best invested - in Stocks or in Bonds.
In closing, I want to take a moment to introduce my new website located at www.FreeRaleighMortgageInfo.com. It is my goal to make this site a great resource for people interesting in buying, selling or refinancing property in the Triangle.
Have a great week!