Market commentary
You know the world has changed when economic data from China effects U.S. markets the same as U.S. economic data. China reported its consumer inflation rose to a 16 month high, fueling fears of monetary tightening in China. The specter of tighter money in China caused early selling in U.S. equity markets, and U.S. bonds have retreated in price as well. Decent demand for Wednesday’s 10 year note auction helped bond prices close higher, however, a decline in weekly U.S. jobless claims, and the higher Chinese inflation data have resulted in mortgages giving back these gains. Still, a borrower can obtain a 30 year fixed rate mortgage sub 5% with a premium price. Not a bad deal, especially when combined with today’s lower home prices.
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10:18 AM
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