Looks like the stock surge this week as expected is causing a sell off in the MBS market and thus causing a back up in mortgage rates. They are still close to record lows but if the stock market starts and end of the year ramp job we may have seen the lows for mortgage rates in the short term.
Mortgage rates heading higher?
Gold is on the march higher again. What can stop this run? I tend to see only a stronger dollar as the key towards stopping this huge run we have witnessed this year. Why is my mortgage blog so focused on this historic Gold Run? It is because I have been a strong advocate of the yellow metal for so long and now it is like watching a giant train wreck in front of our eyes play out each and every day. As nation after nation debased their currencies the purchasing power of those without hard assets like Gold are suffering.
Gold runs higher
This week we saw another leg up in the Gold Market as the yellow metal broke above and settled the week comfortably above the $1,600 per ounce mark. It ended the week very strongly as the clowns in Washington continued to look like they would rather see the country default on its obligation rather than stop the imminent downgrade of our US Government Debt. Even if we get an agreement, the Us dollar will continue to fall and Gold will continue to represent the greatest opportunity to protect us from the goings on in our nations capitol.
another record price for Gold
Looking at the back up in rates this week one would normally ask is the recent rate rally over? I think that we are going to see lower rates from here based on continued weakness in the economy. Friday’s employment report from the BLS was a train wreck! If the budget deal gets done this week, stocks should soar but I am not sure even a rising stock market will keep bonds from heading higher and rates lower.
Rate rally hits the pause button
I thought I should post the first video in the series since everyone loved the most recent version.
This is the second video in the series.
We are really starting to come down in rates again with the 30 yr Fixed rates closer to 4.75%. The 20 yr Fixed is about 4.5% and the 15 yr Fixed is below 4.25% at the end of this week. We should see a tick up in refinances with these lower rate prints. Our US Dollar continues to get killed and yet our Bonds are still being bought by the FED and others. How long can it last? Looking at the Gold and Silver market, I don’t think too long but in a market full of manipulation it is near impossible to predict. I am still long Gold and will continue to be as I see it as the clear winner here. Go Gold!!!
Long Gold
