The unemployment picture however, will not heal with growth below 3.0%. Existing Home Sales were also on tap, up 7.4% to 6.54 million units annualized. 33% of the sales were distressed units and 51% of the borrowers were first time home buyers. Just think where we’d be without the 8K program.
Since stocks are the game today, let’s talk the equities and your 401K. 10% plus unemployment and a weak U.S. dollar are ok short term but stock bearish in the long run. With this in mind, we still have the Fed and it’s never ending easy money program, very low inflation, and market risk that will support the bond/MBS market well into 2010. Blue chip, high quality companies are the only way to go in today’s stock market. As for mortgage pricing, it’s “steady as she goes ” into the new year.
Stocks had a great day, breaking a four day S & P losing streak. The Dow finished up 199 points and the Naz gained nearly 38 points on the day. Given the stock market trade, any gains in mortgage pricing will be more difficult to come by. That said, the market profile neutralized yesterday’s bullish structure but did not turn it negative. The extreme low (yield of 3.52% - going into the close at 3.49%) held with fast money buyers taking it off the lows, not to be revisited into the close. Downside trading was mixed but we did close above the session mode, a net positive. Into the end of the week/month, our bias will lean towards a range trade with follow through in either direction (better or worsening mortgage pricing) doubtful.
Stocks are on fire, closing up 256 points on the [...]
Trading has been brisk for a Monday morning/afternoon, adding to [...]
