Is US Negative News Affecting Mortgage Rates ?
October 16, 2013 @ 11:41 AM by:
It’s day sixteen of the US government’s self-imposed partial shutdown, and with a cash crunch fast approaching US markets are…..enjoying another one of their best days this year. Rumour has it a Senate led agreement to end the stalemate has been crafted, and House Republican Leader John Boehner will allow a vote to take place without amendments. In the meantime, credit ratings agency Fitch placed the US credit rating on “negative watch”.
Quarterly results are starting to roll in and have been largely positive, with figures from Bank of America, PepsiCo and Abbott Labs exceeding forecasts this morning. Dow components IBM and American Express are due after the close. Automobile sales in Europe are percolating as the economy starts to recover, with Septembers sales climbing a decent 5.4%. Germany’s DAX index hit a new all-time high today. The TSX came within a dozen points of posting a new two-year high this morning, currently up 16 pts. The Dow is up 201 pts.
Nobody says it better than Meini Ickert, so I have taken the liberty to repost his daily mail. The recent mortgage rate increase from 3.19 up to 3.59 since April for 5 year terms has not retracted on the recent negative US news. Probably because markets corrected for it in advance, it's no secret, the US has a debt problem.