I'll skip all the rhetoric and cut right to the chase - the direction of mortgage interest rates is currently being directly dictated by trading activity in the stock markets. As stock prices fall - mortgage interest rates edge lower - and as stock prices rally - mortgage interest rates creep higher.
There is no escaping the fact that so far this year mortgage interest rates have been completely unable to sustain a rally to lower levels without significant "flight-to-quality" support of capital fleeing the stock markets in search of a safe harbor. Many opinions are that the DJIA is poised to initiate one more down-leg into the low-6,000's range possibly looking for this price target to potentially be achieved before the end of the month. If that assessment proves accurate, the bottom in the DJIA will likely be completely confirmed by June and before Labor Day stock prices will be engaged in a slow but steady climb to higher levels.
If this forecast is anywhere close to right with these projections (granted, that has yet to be seen) the greatest mortgage financing opportunity in a generation is now available -- to those with enough foresight to recognize it.
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