Today's Initial Jobless Claims were reported at 322,000, which was below expectations of 337,000 and the lowest weekly total since November 3. The four-week moving average for claims dropped to its lowest level in a month by falling 3,000 claims to 341,000. Expectations of weaker economic performance is serving to drag down mortgage rates.
The highlight of the day was Chairman Ben Bernanke's speech. Lenders and the traders were looking for clues or hints about where the Fed will take interest rates when they next meet on January 30 to decide monetary policy.
In regards to the fear of recession Mr. Bernanke said on a Q & A session that, "downside risks to growth have become more pronounced. Notably, the demand for housing seems to have weakened further, in part reflecting the ongoing problems in mortgage markets." The Fed is not currently forecasting a recession in 2008. Instead, he said, "the Fed expects growth to slow."
Have you been to Six Flags Magic Mountain lately? Looking at today's market volatility kind of feels like a roller coaster ride, doesn't it?
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