GRMA #33663/NMLS#: 870421 / GRMA 24310 / NMLS 222425
Toggle Navigation
Menu
Home
Contact Us
Staff Profiles
Real Estate Glossary
Metro Atlanta Experts
Buyer Information
Your Down Payment
Why an inspection?
Buydown Options
Should you buy points?
Closing Costs
Financing Closing Costs
How Much You Can Afford
The Loan Process
Get A New Loan Quote
Broker vs. Loan Officer
Are You Pre-Approved?
Get Your Loan Faster!
Paying Your Loan Early
Your FICO score
What is a credit score?
Improve Your Credit Score
Getting Your Credit Report
Disputing Credit Reports
Mistakes on Your Report
Bankruptcy
Rates and A.P.R.
Daily Rate Lock Advisory
Rate Lock Periods
Fixed Vs. Adjustable
Refinancing Options
When to Refinance
Mortgage FAQ's
Second Mortgages
Mortgage Calculators
Bi-Weekly Mortgage
Insurance
What is PMI?
Eliminating PMI
Shopping Settlement Costs
My Mortgage Blog
Mortgage Market Update 7/22/11
July 25th, 2011 10:47 AM by Nick Rapplean
Markets lurched from nowhere to nowhere this week, waiting for deals. Or no deals, or to see what kind.
The deal watch deflected attention from the economy, which after all is the whole point of the show. New data said a lot by saying nothing. The Philly Fed index, new unemployment, sales of existing homes, starts of new homes, home prices, mortgage applications -- all flat. Neither sinking back into recession nor going anywhere.
Goldman announced lousy earnings, having retreated from trading risk. If they don’t feel like taking risk, who should? And after its IPO, silly Zillow is worth a billion bucks -- no profit, no recognizable business plan, but if it’s tech, fruitcakes will buy the stock.
The markets told us what to think about pending deals. On Tuesday, when it looked as though a big US budget deal was back on, deep spending cuts and some revenue raised, stocks jumped 200 Dow points, and interest rates fell, the 10-year T-note almost breaking two months’ resistance at 2.88%. These two markets typically trade against each other, stocks-better/rates-worse. Stocks-better/rates-better... that’s big. Reflects not just market pleasure at a deal, but the right kind: curtail Treasury borrowing immediately, take the heat off rates, inflation, and the Fed.
The arguments in favor of more spending stimulus, jobs programs, infrastructure, whatever, appear to markets as creative procrastination. Time to bite the bullet.
Then, market reaction exposed this new Euro-deal. Briefly on Thursday it looked as though Europe was throwing in together, making authentic progress toward financial union, and cash came out of bond-market safety and poured into stocks.
Optimism did not survive the day. The new “plan” is hyper-complex gobbledeygook, through it all just more of the same. Cut Greek-Irish-Portugese interest rates enough to let them gasp for air every few minutes, but otherwise hold ‘em under water. Add a dangerous demand for private-sector losses, and pile on more debt. This newest can-kick may defer chaotic breakdown for a month or a year, but bet on sooner than later.
Here in the US, we have a tremendous wrestling-match under the blankets. Taking a page from the NFL book, the parties have largely shut up -- a great benefit to negotiations, but frustrating to those awaiting sacrifice in the arena. Which of us will be called, sent to lions?
Mr. Obama is terrible at this. He was a disinterested Senator who disliked the process and the players. No deal of this magnitude ever gets done without the President putting his future on the line, yet Mr. Obama seems to think a deal will come from Congress, like feathers from a turkey. Mercifully, Joe Biden knows the process cold, and revels in it. John Boehner has shown more character and care than anyone knew, maybe enough to overcome the deficits among his compatriots.
A foreceful change during the week: the threat by S&P and Moody’s to cut the United States’ AAA rating even if there is a deal. If it’s not big enough, nor serious and enforceable, we go to AA and havoc. I don’t think either the President or the Congressional Tea Party want that on their resumes. There are limits to blaming the other’s intransigence, and this one helps.
The worst-possible outcome is a raised debt ceiling, no budget deal, and deferral of a disastrous deficit to an election duel next year, shotguns at ten paces, the American people in the middle. If we will not limit our borrowing, the markets will -- a certain road to higher rates and a choked-off economy.
Last... passing yesterday unremarked by any major media was the 150th anniversary of the bloody collision of 60,000 Americans near Manassas Junction and Bull Run creek, the first real battle of the Civil War. As defeated Union soldiers streamed back into Washington, the reality of a long, hard war arrived with them.
Those demoralized by our temporary difficulty with self-governance, struggling with mere money, might mark yesterday’s occasion by remembering our strength in serious trial, and ability to join together and to heal.
Posted in:
General
Posted by Nick Rapplean on July 25th, 2011 10:47 AM
Post a Comment
Subscribe to this blog
Recent Posts:
Mortgage market update 09-22-2015
Mortgage Market Update 06-13-2015
Mortgage Market Update 06-01-2015
Mortgage Market Update 05-26-2015
Mortgage Market Update 04-29-2015
Mortgage Market Update 03-25-2015
Mortgage Market Update 01-20-2015
Mortgage Market Update 01-12-2015
Federal Reserve Press Release
Mortgage Market Update 12-16-2014
Archives:
June 2010
Week in Review
Weekly Talking Points
Mortgage Week in Review
Rates headed even lower!
Where will rates go?
November 2014
Mortgage Market Update 11-05-2014
October 2014
Mortgage Market Update 10-27-2014
Mortgage Market Update 10-15-2014
Mortgage Market Update 10-08-2014
Mortgage Market Update 10-01-2014
August 2014
Mortgage Market Update 08-26-2014
Mortgage Market Update 08-06-2014
July 2014
Mortgage Market Update 07-29-2014
Mortgage Market Update 07-09-2014
June 2014
Mortgage Market Update 06-11-2014
Mortgage Market Update 06-06-2014
May 2014
Mortgage Market Update 05-27-2014
Mortgage Market Update 05-15-2014
April 2014
Mortgage Market Update 04-25-2014
March 2014
Mortgage Market Update 03-25-2014
Mortgage market Update 03-06-2014
February 2014
Mortgage Market Update 02-27-2014
New Home Construction
Mortgage Market Update 02-18-2014
Mortgage Market Update 02-06-2014
January 2014
Mortgage Market Update 01-30-2014
Mortgage Market Update 01-20-2014
Mortgage Market Update 01-15-2014
Mortgage Market Update 01-13-2014
Weekly Mortgage Update 01-08-2014
December 2013
Mortgage Market Update 12-27-2013
Mortgage Market Update 12-18-2013
Mortgage Market Update 12-16-2013
Mortgage Market Update 12-11-2013
Mortgage Market Update 12-02-2013
November 2013
Mortgage Market Update 11-18-2013
Mortgage Market Update 11-11-2013
Mortgage Market Update 11-05-2013
October 2013
Mortgage Market Update 10-29-2013
Mortgage Market Update 10-24-2013
Mortgage Market Update 10-09-2013
Mortgage Market Update 10-08-2013
Mortgage Market Update 10-02-2013
September 2013
Mortgage Market Update 09-25-2013
Mortgage Market Update 09-18-2013
Mortgage Market Update 09-11-2013
Mortgage News 09-04-2013
Mortgage Market Update 09-03-2013
August 2013
Mortgage Market Update 08-26-2013
Mortgage Market Update 08-21-2013
July 2013
Mortgage Market Update 07-29-213
Mortgage Market Update 07-08-2013
June 2013
Mortgage Market Update 06-25-2013
Mortgage Market Update 06-07-2013
Mortgage Market Update 06-03-2013
May 2013
Mortgage Market Update 05-13-2013
Mortgage Market Update 05-06-2013
April 2013
Mortgage Market Update 04-22-2013
Mortgage Market Update 04-08/2013
March 2013
Mortgage Market Update 03-27-2013
February 2013
Mortgage Market Update 02-27-2013
Mortgage Market Update 02-22-13
Mortgage Market Update 02-19-2013
Mortgage Market Update 02-04-2013
January 2013
Mortgage Market Update 01-24-2013
Mortgage Market Update 01-11-2013
Mortgage Market Update 01-02-2013
December 2012
Mortgage Market Update 12-19-2012
Mortgage Market Update 12-12-12
November 2012
Mortgage Market Update 11-29-2012
Weekly Mortgage Update 11-15-2012
October 2012
Weekly Mortgage Update 10-31-2012
Mortgage Market Update 10-17-2012
Mortgage Market Update 10-01-2012
September 2012
Mortgage Market Update 09-17-2012
Mortgage Market Update 09-11-2012
Mortgage Market Update 09-05-2012
August 2012
Mortgage Markete Update 08-29-2012
Weekly Mortgage Update 08-23-2012
Mortgage Market Update 08-13-2012
July 2012
Mortgage Market Update 07-30-20012
Mortgage Market Update 07-10-2012
Mortgage Market Update 07-02-2012
June 2012
Mortgage Market Update 06-14-2012
Mortgage Market Update 06-11-2012
May 2012
Mortgage Market Update 05-29-2012
Mortgage Market Update 05-24-2012
Mortgage Market Update 05-07-2012
April 2012
Mortgage Market Update 04-25-2012
Weekly Mortgage Update 04-18-2012
Mortgage Market Update 04/13/2012
Mortgage Market Update 04-04-2012
March 2012
Mortgage Market Update 03-30-2012
Mortgage Market Update 03-23-2012
Mortgage Market Update 03-20-2012
Mortgage Market Update 03-16-2012
Mortgage Talking Points 03-13-2012
Mortgage Market Update 03-12-2012
Weekly Mortgage Market Update
Mortgage Market Week in Review 03-02-2012
February 2012
Mortgage Market Update 02-28-2012
Mortgage Week in Review 02-24-2012
Weekly Mortgage Talking Points
Mortgage Market Update 02-17-2012
Mortgage Market Update 02-10-2012
Mortgage Market Update 02-03-2012
January 2012
Mortgage Market Update 01-24-2012
Week In Review 1-13-2012
Weekly Market Update 01-06-2012
December 2011
Mortgage Market Update 12-16-2011
Housing Market Update 12-14-2011
Housing Market Update 12-05-2011
Housing Market Update 12/01/2011
November 2011
Mortgage Week in Review 11-18-2011
Mortgage Market Update 11-14-11
Mortgage Week in Review 11-11-11
Weekly Mortgage Update 11-07-2011
October 2011
Mortgage Week in Review 10-28-2011
Mortgage Market Update 10-18-2011
Mortgage Update Week ending 10-14-2011
September 2011
Mortgage Week in Review 09-30-2011
Weekly Mortgage Market Update 09-19-2011
Mortgage Market Update 09/12/2011
August 2011
Mortgage Market Update 08-29-2011
Mortgage Market Weekly Review 08-19-11
Economic Update 08-15-2011
Credit Down Grade
Mortgage Market Update 08/01/2011
July 2011
Mortgage Market Update 7/22/11
Mortgage market update for week ending 7-15
Weekly Update
June 2011
Weekly mortgage update for week ending 06/24/2011
Mortgage Market Update week ending 06-24
May 2011
Mortgage Market Update for Week Ending 06-03
Weekly Financial Update
April 2011
Economic Update 04-29
Weekly Mortgage Market Update 04-22
Weekly Mortgage Update 04-15
Mortgage Week in Review 04-08-2011
March 2011
Economic Update
Mortgage Market Update March 25th
Weekly Review
Weekly Market Info
Mortgage Market Update
Weekly Info
February 2011
Weekly Mortgage Rate Info
Weekly Mortgage Rate Update
January 2011
Mortgage Weekly Update
Mortgage Rate Update
Mortgage Market in Review
Mortgage rate info for this week!
2011 Mortgage Update
December 2010
Weekly Market Update
November 2010
Mortgage Rates: The Week Ahead
October 2010
This Week's Info
August 2010
Why Bonds?
The Mortgage Market Week in Review
Morgage Market Update
Weekly Mortgage Update
What happened to ECON101?
July 2010
This Week in Review
Weekly Update
Mortgage Market Weekly Review
November 2014 (1)
October 2014 (4)
August 2014 (2)
July 2014 (2)
June 2014 (2)
May 2014 (2)
April 2014 (1)
March 2014 (2)
February 2014 (4)
January 2014 (5)
December 2013 (5)
November 2013 (3)
October 2013 (5)
September 2013 (5)
August 2013 (2)
July 2013 (2)
June 2013 (3)
May 2013 (2)
April 2013 (2)
March 2013 (1)
February 2013 (4)
January 2013 (3)
December 2012 (2)
November 2012 (2)
October 2012 (3)
September 2012 (3)
August 2012 (3)
July 2012 (3)
June 2012 (2)
May 2012 (3)
April 2012 (4)
March 2012 (8)
February 2012 (6)
January 2012 (3)
December 2011 (4)
November 2011 (4)
October 2011 (3)
September 2011 (3)
August 2011 (5)
July 2011 (3)
June 2011 (2)
May 2011 (2)
April 2011 (4)
March 2011 (6)
February 2011 (2)
January 2011 (5)
December 2010 (1)
November 2010 (1)
October 2010 (1)
August 2010 (5)
July 2010 (3)
June 2010 (5)
Categories:
Finance (2)
Finance, Mortgage (4)
General (164)
Mortgage (1)
Real Estate (2)
My Favorite Blogs:
Sites That Link to This Blog:
×
Close
Add a new blog comment
*
Name:
*
Email Address:
URL:
*
Comment:
Characters from the image above:
Your entry does not match the image, please try again.
Submit Comment
×
Close
Subscribe To My Blog
*
Name:
*
Email Address:
Address:
City:
State:
Zip:
*
Characters from the image above:
Your entry does not match the image, please try again.
Subscribe