24 Oct Safe play to lock in here
Markets opened with stocks pushing higher due to solid earnings from Ford and 3M, but bonds look to be running out of steam for the moment. Initial Jobless Claims came in lower than last week, but still higher than expectations by 9,000 at 350,000. The move higher in mortgage bonds since early September has been significant, so some pullback and consolidation would be expected. It has also resulted in pushing interest rates to an average of 4.13% for a 30 year fixed, with an average of.8 points in cost per Freddie Mac. (Keep in mind that City Creek’s best rate is now below 4%!). With bonds hesitating and stocks moving up, it would be a safe play to lock in gains on short term transactions.