Daily Commentary by Larry Baer: According to data released by the private Institute of Supply Management activity in the service sector of the economy cooled slightly in November to a reading of 52.0% from October's 52.9%. This is the third consecutive monthly decline and puts the index below its third quarter average of 53.0%.
Mortgage investors barely noticed the ISM data as their attention remains fixed on rumors and news reports surrounding a major summit of European financial leaders to be held on Thursday and Friday of this week. Some analysts are suggesting the upcoming summit will be a major defining moment for the European Union and by extension for global economic history. I don't know whether such a dramatic description will likely prove to be accurate or not -- but I do know tension in the global investor community is extremely high and liquidity is declining as year-end approaches - when combined these conditions ramp up the potential of a period of very "whippy" mortgage interest rate movement. Heads up.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
