Market Analysis

The bond market opened slightly better this morning.   The risk for higher mortgage rates represented by the huge supply of government debt coming on to the market (more supply tends to cause prices of bonds to decrease and rates move in the opposite direction of price) appears to be, for the moment, offset by weak stock market performance and tame inflation.  With gas at the pump now dipping to below $2 per gallon, inflation worries have really taken the back burner.   Larry Baer with the Market Alert service continues to place us in a technical float zone.  When floating we recommend vigilence.  If the market starts to move in the wrong direction we recommend being ready to lock even if rates move up slightly.

Posted by Matthew Breston on November 12th, 2008 9:05 AMPost a Comment (0)

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