Daily Commentary by Larry Baer: There is absolutely nothing on today's economic
calendar for mortgage investors to "chew on". Directional clues with
respect to mortgage interest rates will likely be provided by trading action in
the stock markets. Higher stock prices will tend to push mortgage
interest rates fractionally higher while falling stock prices will tend to
support steady to perhaps fractionally lower rates.
Looking ahead to the
coming week -- news headlines related to Congressional efforts to find a way
down from the edge of the "fiscal cliff" will easily trump the
smattering of scheduled economic reports as well as the Treasury Department's
three-part auction featuring 3- and 10-year notes and a round of 30-year
bonds. The week's wildcard designation goes to Fed Chairman Bernanke and
his fellow central bankers as they conduct two-days of Federal Open Market
Committee policy discussions on Tuesday and Wednesday.
A resolution of the
"fiscal cliff" issue by Christmas, a week before the deadline,
remains uncertain but not out of the question. If/when a political
compromise is reached to avoid the "fiscal cliff" -- stocks will
likely rally at the expense of rising mortgage interest rates (as long as the
deal is something more than a simple extension of the current deadline).
Until/unless a fiscal agreement is achieved - a primary support for steady to
perhaps fractionally lower mortgage interest rates will remain firmly in place.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
