What’s all the Yellen about?

  • November 13, 2013

yellencartoonThe bond market opened with a rally; improving rates for the first time this week.  Let’s yell it from the rooftops, “investors finally came back to the market to buy our bonds!” Some economists attributed the move to optimism surrounding Janet Yellen’s nomination hearing tomorrow. Others said it’s just the market correcting from yesterdays weak trading volumes. Either way…we will take it!

•     Mortgage applications declined 1.8 percent this week as mortgage rates increased after the Employment Report. Let me get up on my soap box for a second, “Hey, everyone these are still historically attractive rates.”

•     The zero point rate 4.625% now pays you .125 points, that’s an extra ½ more than yesterday to cover fees and other closing costs. That’s something to yell about, right? Sure it is.

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•     Purchase Index was flat; although the number was positively revised it is still below the annual average. You know homes are still affordable, I might get out there and buy one.

Tonight Ben Bernanke is scheduled to speak. Investors are looking for any indication surrounding future economic policy. So, at 7 PM tonight get excited and turn on CSPAN to hear Big Ben speak.

By Lindsey Fediuk, Capital Markets Analyst

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