Mortgage Rates Dropping
Stocks fell today – kind of a see-saw going on the last couple of days – falling 215 points.
Bonds continued their dramatic rise – a decrease in interest rates. Most bond players think that the bond market is set for some sort of correction soon as there has been a truly dramatic, dramatic rise in value.
The Dollar lost value, as did gold.
The big news in oil and gasoline. Oil fell below $44/barrel. Gasoline fell below $1/gallon. It’s just wonderful to watch the fall of gasoline. The pump price is now set to fall to $1.35 to $1.40 over the next few weeks – providing the wholesale price stays down where it is today.
In the news today…..
The dramatic fall in bonds is pushing down mortgage rates. The 30 year fixed rate mortgage is now 5.53%, and the 15 year is 5.33%. If you need a mortgage, or were thinking about it – now is the time to dust off those files and starting thinking again. Contact your favorite mortgage broker, and get started. Wouldn’t it be great if the rate kept falling???
The Fed Funds rate is expected to be dropped by the FED this month. The bond market is betting that there is a 65% chance that the FED will reduce that rate by 0.75% – a massive drop, with nothing much left to drop in the future.
Factory orders fell 5.1% in October. This is a BIG drop in factory orders and is another indicator (nail in the coffin) of the recession we see all around us.
Here are Today’s numbers:
Dow Jones 30 Industrial – 8591 (up 173 points)
10 Year Treasury Bond – 2.67% (down 0.02%)
Euro – $1.2705
Gold – $771 (down $13)
Oil – $46.79 (down $0.17)
Gasoline – $1.04 (down $0.02)
