Non-eventful news day

Mortgage bonds are attempting to stabilize after the beating they took following the Fed statement on Wednesday.  The S&P 500 hit a new record intra-day high today.  However, this has not had the typical downward pressure on bond prices.  Usually as the stock market moves higher, investors sell bonds to move their money into the stock market.  In turn, a strong stock market will typically push interest rates higher.  So far today, both the stock and bond markets are holding strong.

Today is non-eventful news day in the market.  This is a good thing, as it gives the markets time to digest how they feel about the threat of increasing short term interest rates as early as next spring.  All is not lost, however.  When you look at past history, our housing market has performed well in times when interest rates were north of 6%.  Although this seems to be a high price to pay for a mortgage, if home values are moving higher it is easier to absorb, and people will happily pay that price.

With the markets holding steady, there is no need to immediately rush in and lock.  However, be mindful that we are in an upward trending interest rate environment.  If you’re not carefully watching the market, you could get burned.