Mortgage Blog

This week brought on more pullout from investors in both the stock market and bonds as both financial segments loss ground this week. As previously mentioned from my last report, the departure from the normal see-saw trading between stocks into bonds, were money flowing out of stocks would find its way into bonds and vice versa, is occurring because securities must be liquidated to raise capital. Because investors are trying to offset margin calls, all securities are being cashed in. This is slightly different from what we saw 2 weeks ago were foreign investors pulled money out to raise cash; we are seeing the same thing happen in our own homeland. There is now the fear from individual investors, were people are just giving up and cashing in just to get out of the market!

The brightest news out there were existing home sales were up to their highest levels in the last 13 months! And oil prices are down to $64 per barrel due in part by the weakening global economy and the rally in the greenback.

Technically, bond prices have moved below the 25 day moving averages, so I am recommending to Lock for those short term transactions. Otherwise, I do believe that the economic data will eventually move our interest rates lower over time – because the economy isn’t going strong we should see lower rates into the future.

If you have any questions, please feel free to call me.

Randy Reed

303.524.9191