22 May volatility unlike what we typically experience
Stocks popped higher after comments from Ben Bernanke indicated there will be no slowdown in the current stimulus agenda. With signs of improvement, but overall weakness as a threat still, investors pushed the Dow over 15,500. Existing Home Sales came in within a whisper of the estimate, but the results still have mortgage bonds back down to the lowest levels of the year. We will see if the Fed kicks in more buying, as this move lower will push interest rates to the highest of the year… Which of course is still below 4%. We will suggest a very cautious floating bias as long as prices stay above this level. However, with the speed at which prices are moving, this may happen quickly. If you are on the verge of deciding whether to lock or float, call our office to get up to the minute recommendations. We are seeing volatility unlike what we typically experience. We may very well fall below current support levels. Should this happen, we will see rates higher than we have had in roughly a year.