China slowing its economy, Greece going broke, and political policy uneasiness in Washington DC are all giving the stock market a continuing headache

Although the early morning economic data was much better than expected, especially GDP plus 5.7%, stocks are just above unchanged and bonds, notes, and mortgage backs are grinding higher (rally).  Most of the improvement in treasury and mortgage pricing can be attributed to month end hedge fund extensions.  Barclays index, which most money funds must follow, call for a .06 duration extension in fixed income funds.  This is healthy and has forced firms that must comply to the index to step up and buy all the instruments we just talked about.

Concerns over stock price valuations continues to support our market as well.  China slowing its economy, Greece going broke, and political policy uneasiness in Washington DC are all giving the stock market a  continuing headache.  Monday will be a new month and the hedge fund buying will be history.  More this afternoon as we wrap it up for the week.

About Max Leaman Austin Mortgage

GREAT RATES, LOW FEES, CLOSE ON TIME™ ---- 2012 Ranked #1 Austin Residential Mortgage Lender (Austin Business Journal) 2010, 2011 & 2012 Five Star Professional (Texas Monthly) 2009, 2010, 2011, 2012, 2013 PrimeLending Chairman's Circle Award 2009, 2010, 2011, 2012 Scotsman Guide Top Originator (Top 200 Mortgage Professionals in U.S.A.) Better Business Bureau "A+ Rating" National Lender Rankings (Scotsman Guide): Top Purchase Volume (No. 10) Most Loans Closed (No. 32) Top Dollar Volume (No. 88)

Comments are closed.