Monthly Archives: February 2007

After the most major meltdown in U.S. stock trading since September 17, 2001, markets appear to be recovering this morning. This should reverse the drop in mortgage rates we saw towards the end of the day yesterday. To understand why … Continue reading →

The Flight-to-Quality continues in the bond markets. Iran said today that the suspension of its uranium enrichment program “will never happen”, fueling speculation that an international stand-off is pending. The United States has sent additional aircraft carriers to the Gulf … Continue reading →

Aside from CPI, last week was quiet on the economic data front. Traders used the week to catch their breath and look around a bit at market conditions. They liked what they saw and strong demand for bonds pushed mortgage … Continue reading →

In defiance of the UN Security Council, Iran is taking another step towards successfully building a nuclear weapon. Yesterday, it was reported by the International Atomic Energy Agency that Iran expanded its ability to create nuclear weapons and that it … Continue reading →

A little known fact about yesterday’s CPI numbers: they weren’t as inflationary as you would have otherwise thought. It all comes down to decimals and rounding. What The Expectations Were CPI: 0.1% increase in January Core CPI: 0.2% increase in … Continue reading →

Markets did not like today’s Consumer Price Index figures which came in higher than expected. However, the downbeat mood this morning is not enough to reverse the recent downward trend in mortgage rates. The chart at right shows CPI over … Continue reading →

Fed Chairman Ben Bernanke carried the biggest stick in the mortgage rate market last week. His “Goldilocks” testimony before the Senate Banking Committee spoke of favorable growth and subsiding inflation. Markets expected a harsher tone from Bearded Ben and that … Continue reading →

Interest rates are currently inverted, a market situation in which the longer you commit to lending your money, the less your return on investment. It’s counter-intuitive so let’s delve a little deeper. Imagine if a friend asked you to borrow … Continue reading →

The markets continue to show their appreciation for Fed Chairman Bernanke’s testimony yesterday and mortgage rates are falling in response. So, why do the Chairman’s words hold such sway over global markets? Simple. Buying and selling U.S. dollar-denominated securities is … Continue reading →

Addressing the Senate Banking Committee this morning, Fed Chairman Ben Bernanke gave the speech that most people expected: The current monetary policy (read: Fed Funds Rate) is at a level that both sustains economic growth, and tempers inflation pressures. In … Continue reading →