Daily Commentary by Larry Baer: 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".
Mortgage investors
gave this morning's economic news little more than a passing glance.
Consumer Confidence
fell more than expected in December, hitting a four-month low as the bickering
and political brinkmanship in Washington
sapped what had been a growing sense of optimism about the economy.
Other data released
earlier in the day by the Labor Department showed the number of Americans
filing first-time claims for government jobless benefits fell last week by
12,000 - to nearly an 4 ½ year low, while new home sales in November churned
4.4% higher to touch levels last seen in April 2010.
No specific bill
dealing with the twin "fiscal cliff" issues of across-the-board tax
hikes and massive government spending cuts is on the agenda in either the
Senate or the House of Representatives today -- so investors are becoming
increasingly resigned to the idea that the best that can be hoped for now is a
"kick the can down the road" kind of deal before year end.
This new scenario is
pretty bleak since it means we are all in for extended exposure to the
continuing acidic dysfunction of our government. As long as this
condition persist - the stock markets will likely experience a ramping up of
selling pressure - a process sure to add support to the prospects for steady to
perhaps fractionally lower mortgage interest rates.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
