LaPorte Group Blog

Rates Heading in the Wrong Direction

February 7th, 2008 2:34 PM by

This afternoon we saw rates turn around and go the wrong way on us, and pretty fast. One of the Federal Reserve Presidents spoke a little too openly about his feelings on the Fed rate cuts. Richard Fisher, the only Fed president to vote against rate cuts, said that the rate cuts could "juice up inflation." You can read more about his comments here.

Another Fed president, Dennis Lockhart, spoke today and said that the turmoil in the credit markets was "painful but necessary" and that we are now headed to a "new normal" in how the credit markets work. You can read more about that here.

Now here is a surprise. In an election year, the Democrats and Republicans were able to work together quickly to pass a stimulus package that will send about $600 to most tax payers in the United States. For more info on this happening read this.

Here is a chart of today's movement on the bond market. When the bond falls, our rates on mortgages go up. Fairly early in the day we broke throught the 25 day moving average and headed towards the 50 day moving average before bouncing back a little in the afternoon.

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Posted by on February 7th, 2008 2:34 PM

LaPorte Group Blog

Rates Heading in the Wrong Direction

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