Hurry “the Economy is fixed,” isn’t that what Tim Geithner recently said?
This is yet another clear sign of the incompetence of the current administrations handling of the Economy.
Mortgage Bonds jumped on board the roller coaster of volatility today opening lower on the rosy economic news from across the pond but moved higher the weak data from the ISM and the worse than expected ADP report – only to fall after the Treasury announced the auction amounts and increased issuance in TIPS.
This is a clear sign that the Economy is fixed isn’t it?
Also keep in mind that the recently imposed HVCC appraisal program is killing home sells!
It is nearly impossible to get fair market value when using the HVCC appraisal process and worst of all Underwriters continue to request additional conditions in regards to the HVCC appraisals.
Is anyone listening here? The bank that the Underwriter works for orders the appraisal not Brokers, HELLO.
Look people a fool and their money are soon parted. Use your head when making large financial decisions. Do not believe any TV analyst or even me. Do the research yourself so you fully understand. The biggest problem with TV news and most Newspapers are they take the safe approach and more often than not relay on out dated static’s.
Speak with your local Real Estate Agent to get accurate information in your area.
Interest rates will certainly take another hit next week as the Treasury will offer $37B 3-yrs, $23B 10-yrs and $15B 30-yrs Tuesday through Thursday.
Today the benchmark 4.5% coupon traded in a 75bp range and closed near the low end at $99.31 down 38bp. Fridays close should start to paint the real picture.
The major indexes closed slightly lower by the end of trading weighed down by the ISM report and ADP but the financial sector did finish higher and provided support led by better than expected earnings from a couple of insurers.
The Dow lost 39 points to close at 9,280, while the S&P 500 Index finished above 1,000 for the 3rd straight day ending at 1,002 down 2.93.
The Nasdaq dropped 18 points to 1,993. Oil closed at $71.97/barrel up 55 cents.
The only economic report tomorrow is the Initial Claims report before the big report on Friday, Non-farm payrolls, where it is expected that there were 328,000 jobs lost in July.
The Fed’s can only sell bonds for so long before inflation begins to run wild. It is anyone’s guess as to when that will happen but selling bonds so quickly is much like stretching a rubber band. The snap back will happen suddenly and it will sting as those sitting on the sidelines might find themselves even further from home ownership than today.