Market Update for the week from Nick Russo!
December 26, 2013
Last Week, bonds were able to rally Friday and closed well into positive territory. This puts pressure on Banks to lower mortgage interest rates. Investors have been previously quoted as fearing the Fed taper (Fed reduction in buying mortgage bonds which they have been doing for some time to lower mortgage rates). Investors are now chanting "don't fear the taper." This was a positive sign and created a bias of floating not locking in a mortgage rate as they are expected to improve. With the last full week of trading for 2013 behind us, what's in store?? One thing is for certain, housing is expected to continue to improve causing home prices to rise and rates are going to be volatile. Have a great weekend and as always reach out to me for any lending advice!