Applying Economic Data to Interest Rate Volatility
Bull
Neutral - Gov't Proposed Freeze on "Type's" of Mortgages
Good
- Gives staying power to current homeowners - its a short term band-aide
- Brings stability to municipalities tax revenue for bond holders & rating agencies.
- Stabilizes "sector" risk in the residential real estate, i.e.: CA, FL, AZ, NV.
- Wall Street passes the buck - doesn't take its true responsibility for creating these investment vehicles & their demise.
- Chilling effect on the securitization of mortgages
- Cut off capital
- Rates will have to rise to compensate "new" risk - US gov't interventions / mandates
- Extends a recovery to real estate
- Populations might begin moving from higher risk states.
- US employers added 94,000 jobs in November& the unemployment rate held at 4.7%
- Rates climb
- Is the Market saying the "worst is behind us & bond yields supposed to be higher?"
- This main barometer of economic data completely challenges the Fed for further rate cut rates.
- Bush's sub-prime proposed mortgage freeze
- Goldman Sachs Group estimates that the worldwide loss in the credit markets may reach $726 Billion.
William J Sorrentino Jr
Homeowner Advisor
The Prime Financial Group Inc.
110 West Indiana Avenue, Suite 204
Deland, Florida 32720
(386) 852-7201 OFFICE
(407) 386-7504 EFAX
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