Hello Friends, The bond market did not like the
Presidential Election results with a massive sell off that began the day after the election and continued for four consecutive trading sessions that saw mortgage rates increase between .5% and .75% across the board for all mortgage products. Following the election, many voting Federal Reserve members, including the Big Kahuna Janet Yellen, seemed to indicate that a December rate hike is a foregone conclusion. Say good-bye to the best run on rates in over 50 years that began around July 5th of this year and concluded the day after the election.
We may still see some temporary improvement following a December rate hike since the bond market likes it when the Fed actively fights inflation and the Fed’s tool in doing that is raising the Fed Funds rate of interest.
This may be the beginning of when the real estate markets start turning from a seller’s market to a buyer’s market. I am looking forward to the change despite the fact that the recent five-month run on rates on an entire back piece inspired by Hindu mythology and stories that my father used to tell me verbally as my bed time stories when I was a child.
I am sure this marketing expert knows what he is talking about, but it would be great to hear from you about what you like or don’t like about the content that I write for this monthly newsletter. Maybe hearing about the latest concert I went to or the most recent place I traveled to for SCUBA diving interests you more than the boring market updates and mortgage related blurbs that I write. Or maybe you like my take on the industry and only need to hear about my personal life once a year around the holidays.
Please feel free to call or e-mail me with your feedback. This newsletter is my chance to connect with all of you and I want to know what you like or dislike about this mailer and my content, so I can give you something each month that keeps your interest and is of some small value to you.
In the meanwhile, here’s wishing you all a happy and healthy holiday season and a very happy new year!