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Are interest rates surging today? why? sustainable? should one lock?
Are you in the process of getting a loan, and when do you expect to close.
Ellen Silverman
E.S. Funding Co.
qe3 isnt coming. fed cant control this move
Must be due to lower inflation.
look at moves in 10yr..lending rates rise for 3 main reasons:
1. rising credit risk - saw that 2008-2009
2. rising FNMA mortgage bonds - drifts with market sentiment on future inflation expectations + credit risk
3. bank lending app demand clogs pipeline - banks may raise rates
I'd have to go along with Macro_m on this one.
http://www.bloomberg.com/news/2012-03-13/dollar-near-4-week-high-as-fed-raises-economic-assessment.html
In the light of things looking better in the U.S., the market wants to hold dollars and short Treasuries,” said Shahab Jalinoos, a senior currency strategist for UBS AG in Stamford Connecticut. “These kind of yield moves would have made the market buy dollar-yen, but on top of that you have clearly divergent central bank policy with aggressive easing in Japan.” A short position is a bet that an asset will decline in value.
or put in another way, bet that rates will rise.
Wow, 2.29% for the 10 year is so high!!!!!! When you compare it to the trailing one year average of 2.46%, two year average of 2.80%, 3 year average of 3.02%, five year of 3.38%, and ten year average of 3.87%.
Oh no wait, its still below all of these.
...and if people are worried about inflation, why was gold down 3% today? And down considerable from its $1900 high?
Dollar up -> gold down.
When hard assets are depreciating, getting 0% on a 10 yr bond makes perfect sense. Just a place to park and given the 'successful' stress tests maybe bond holders will finally ask for more than 0% return on their money.... Or they'll go park it elsewhere.
Yeh. Higher interest rates. Bullish for nyc re.