Daily Commentary by Larry Baer: It is exceptionally quiet in the mortgage market
this morning - the few traders still at their desk are simply there because
they drew the "short straw" - not because they want to be.
The fiscal cliff is
the only thing that is important to investors right now - and that story is on
hold until the President and Congress return from their holiday recess on
Thursday, December 26th.
The prospect of a
fiscal agreement between the White House and Republications before year-end is
still possible - but increasingly improbable. House members and senators
now have less than a week to reach agreement on an issue they have been trying
to resolve for more than a year. As a result, investors continue to
move capital to the sidelines as the curtain opens on yet another act of
ongoing political theater - a condition supportive of generally steady mortgage
interest rates.
As has been the case
for the past several weeks - economic news may cause a temporary little flutter
in the mortgage market - but any substantial shift in the current trend
trajectory of mortgage interest rates will almost certainly be tied to events
surrounding political action - or lack thereof - with regard to the looming
"fiscal cliff".
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
