LaPorte Group Blog

Good evening all. The Dow Jones kept falling this afternoon. It was down nearly 200 points by 11 am EST, then bounced back around 100 points. That level could not hold though. It gave back all that rebound and a little more to finish down 207 points. It looks like the drop today is being blamed on credit and consumer concerns. Read more here on CNNMoney.com, Wall Street’s Terrible Tuesday.


The disappointing news from Wal Mart and Home Depot could spell trouble for the economy as a whole. I have read that the lower than expected sales at Wal Mart and lower guidance from Home Depot could lead to a recession by early next year. The lower sales and/or revenue is showing that the economy is slowing and people are starting to spend less.


On the mortgage side of things today, we did see a slight uptick in interest rates. Not enough to move up .125%, but it is getting closer. Mortgage bonds were down a little in trading today, which will continue to put upward pressure on rates. We are currently sitting just above a level of support. If the support holds and the market makes a slight turn, the interest rates should bounce back a bit. If the bonds break through that level of support, we will most likely see the interest rates work their way up some more.