Stocks are still trending higher as the economy shows signs of at least stabilizing at current levers. Layoffs at least at larger companies have slowed and productions seems to be picking up. In the longer term economic growth will be challenged by several factors
1.Loss of value in real estate that is most likely not going to return in the next ten years
2. Continued erosion of 401k values from the peak
3.Loss of income from investment due to low interest rates
4. Lower income per capita due to low employment levels and lower paying jobs
5. High fixed costs of living due to higher taxes
6. Higher cost of medical insurance and medical costs
7. Lack of credit availability to less than perfect borrowers
8. Lack of credit availability to small business
9. Continued cost of fighting wars in Iraq and Afghanistan
10. Funding issues relating to social security
These issues will weigh on the Bond market for many years. People who expect that we are going to quickly emerge from this are way too optimistic. Mortgage rates will need to remain low for the foreseeable future if we are to weather this crisis
Tuesday, January 12, 2010
Saturday, January 2, 2010
Mortgage market 1/6/2010
Today's Mortgage and Bond Rates 01/06/2009
Bond Market Rates Mortgage Rates
30 Year Treasury 4.70% 30 year Fixed 5.29%
10 Year Treasury 3.83% 15 Year Fixed 4.73%
2 Year Treasury 1.01% 1 Year ARM 3.91%
3 Month Treasury 0.07%
Other Stats
Oil 83.01 Gold 1.134.40 Dow 10,573.250
It has been 3 months since we posted and wow what a change, The Dow is up 800 points gold is 100.00 higher and oil is banging on the door of 85 dollars a barrel.
Pundits are still saying the economy is rebounding. I must admit that from the financial market stand point it looks better. But looking closer are things actually on the verge of improving? I don't believe so. The consumer is still in total distress. Jobs are still being lost, house prices are still falling.The housing construction and home improvement business are at a stand still. States are facing huge budget deficits and of course the feds are borrowing like there is no tomorrow. I fail to see the improvement.
With the 3 month Treasury at .07% there is still a lot of scared money in the market. Time will tell who is right on this call.
Mortgages still look to be a good for consumers if they can qualify. I sense that rates will be moving higher soon. When the Fed stops purchasing mortgage backed securities in the not to distant future that may be the signal that the party is over. Another warning sigh is that the 10 year is a full 70 basis points higher the 3 months ago while mortgage rates are actually slightly lower.
Please feel free to add you comments ad e-mail if you would like a free link in our mortgage company, appraiser or realtor directory
Bond Market Rates Mortgage Rates
30 Year Treasury 4.70% 30 year Fixed 5.29%
10 Year Treasury 3.83% 15 Year Fixed 4.73%
2 Year Treasury 1.01% 1 Year ARM 3.91%
3 Month Treasury 0.07%
Other Stats
Oil 83.01 Gold 1.134.40 Dow 10,573.250
It has been 3 months since we posted and wow what a change, The Dow is up 800 points gold is 100.00 higher and oil is banging on the door of 85 dollars a barrel.
Pundits are still saying the economy is rebounding. I must admit that from the financial market stand point it looks better. But looking closer are things actually on the verge of improving? I don't believe so. The consumer is still in total distress. Jobs are still being lost, house prices are still falling.The housing construction and home improvement business are at a stand still. States are facing huge budget deficits and of course the feds are borrowing like there is no tomorrow. I fail to see the improvement.
With the 3 month Treasury at .07% there is still a lot of scared money in the market. Time will tell who is right on this call.
Mortgages still look to be a good for consumers if they can qualify. I sense that rates will be moving higher soon. When the Fed stops purchasing mortgage backed securities in the not to distant future that may be the signal that the party is over. Another warning sigh is that the 10 year is a full 70 basis points higher the 3 months ago while mortgage rates are actually slightly lower.
Please feel free to add you comments ad e-mail if you would like a free link in our mortgage company, appraiser or realtor directory
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