December 21st, 2007 10:32 AM

On a daily basis the bond charts have been getting whiplash.  One day prices dropping like a stone (resulting in climbing rates), the next day climbing like a rocket (and rates dropping).  Any sniff of news on the economy either slowing significantly (rates drop) or inflation/economic growth (rates climb) is causing big swings in the markets.  Today we learned that in November consumers made more and spent more and a key inflation number was up higher than expectations and outside the Fed's comfort range--that whistling sound is the sound of dropping bond prices and higher yields, or rates.  Yesterday was a very positive day in the markets and it looked like investors would drop some lower rates in our stockings, but today the Grinch came down the chimney and took the stockings.  We continue to advise: LOCK! Lock everything as soon as you can as the market is very volatile.

 

We see a drop in Jumbo this week, not sure the reason except it could be Wall Street is beginning to increase investing in Jumbo fixed rate mortgages--we'll see if the trend continues., conforming stays the same:

 

 

30 year conventional at 1 point 5.875%

30 year jumbo at 1 point 6.625%

 

 

I hope Santa is kind to everyone!  We will have our standard "pink" Christmas with pink dolls, and pink clothes, and pink everything for the girls---nothing in my size though!

 

Happy Birthday today to Leslie!

 

 

Dennis

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