Friday, March 21, 2014

Friday Real Estate and Interest Rate Update


The stock market opened better, the interest rate markets are little changed from yesterday. There are no economic reports today. Without anything more important today markets are focused on the escalation of tensions between the West and Russia. Yesterday the President added more sanctions, more symbolic than impacting; freezing more Russian bank accounts and visas; Putin immediately did the same for some US politicians and business leaders, keeping them from going to Russia. Tit for tat as the WSJ described it. So far the sanctions and harsh words from the US and Europe have no real effect. 

Markets will continue to be uneasy over the situation with Russia but so far there is no noticeable market response to all the tough talk because most don’t take it as seriously as the Administration and Europe’s leaders do. The stock market continues to move higher, the Treasury market (MBSs) holding well in the face of Yellen’s comments earlier this week. The 10 continues to resist moving above 2.80% a very critical level for long term rates. Investors still taking out insurance policies against the remote possibility that the Russia situation might escalate to some form of military consequence between Ukraine and Russian troops. Given that when the initial mess began the 10 yr fell to 2.62% for a day and is now back to levels that are the highest yield since the end of January, the fear factor is quite small. President Vladimir Putin says Russia should refrain from further retaliation against the U.S. in response to sanctions targeting members of his inner circle after Crimea's annexation.

There is little information available today so there should be no rate movement. I would suggest floating your interest rate until next week unless you are closing next week. Follow this BLOG for all your Real Estate and Mortgage Interest Rate updates in Texas.



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