Daily Commentary by Larry Baer: It is a very quiet day in the mortgage
market. There is nothing on the economic calendar to influence trading
action. Most mortgage investors are keeping to the sidelines in the
absence of progress on the fiscal cliff negotiations in Washington.
As I mentioned in
this space yesterday -- the only thing really driving the trend trajectory of
mortgage interest rates today and through the end of the year will be headlines
on the fiscal cliff negotiations. Economic data may cause a temporary
little flutter in the market - but any substantial shift in the current trend
trajectory of mortgage interest rates will almost certainly be tied to events
surrounding the looming fiscal cliff.
A resolution of the
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 in place - a
primary support for steady to perhaps fractionally lower mortgage interest
rates will remain in place.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
