Mortgage Rates

Thank you for your service and happy Veterans Day! Mortgage Market Anthony Hood Equity Investment Capital Office: 949-891-0067 Email: tony@equityinvestmentcapital.com website: www.equityinvestmentcapital.com This Week; Monday is Veteran’s Day the bond and mortgage markets will be closed but the stock market will be open all day. Interest rates have fallen and likely to decline more as economic growth slows in Europe and China and the UIS struggles with that fiscal cliff that unless there is an agreed plan between the White House and the House would lead to big increases in taxes and sizeable spending cuts. The cliff will be avoided in the end, but it’s about the “concessions” both parties can agree on that will determine how the economy grows in 2013. The last week was one of increased volatility in financial markets; we expect it to continue this week. A number of key data releases are on tap this week. October retail sales, Oct inflation readings with PPI and CPI, Nov Philadelphia Fed business index, the Empire State manufacturing index, Oct industrial production and factory use and weekly claims. In Europe the Greek debt crisis and Spain’s continued reluctance to agree on austerity conditions in order to convince the ECB to buy its bonds keeping Spain’s interest rates manageable. US stock indexes saw heavy selling last week, concern over the possibility of increases in dividend taxes and health care costs keep investors fearful. The bond and mortgage markets will reap the benefits of uncertainty with lower interest rates an increasing possibility. That said, we continue to believe there isn’t much more left in the bond and mortgage markets.