Danny Salas

Archive for November 30th, 2009

Chico, CA Interest Rates Market Report – Economic Influences – November 30, 2009

Dubai's Troubles Help Interest Rates

Black Friday

It came and went, and the numbers, according to the media, were great.  However, let’s look at this closely.  There were 22 Million more shoppers this year, compared to last year.  With 195 Million shoppers, all over the news channels, we’re seeing and hearing excitement about this year’s Black Friday Numbers.  The problem…people are buying less.  The National Retail Federation has estimated that $41.2 Billion were spent.  That matches last year’s numbers.  Do the math.  Also, think about this.  This year, we’re seeing more incentives to get the people to the shops.  So, the real numbers will be interesting to watch unfold.

Dubai Having $$$ Problems

Who’d have thought?  This is the country that was forming its own islands to make them look like palm trees.  They’re running out of money?  The fact is that Dubai requested more time, to make their monthly debt payments.  The world was in shock, but interest rates benefited from this shock, as money poured from stocks, into the safe haven of bonds.  Apparently Abu Dhabi and The United Arab Emirates are loaning funds to Dubai, but it’s still alarming that many projects (like the palm tree islands), may not be completed.  This will, in turn, hurt European Banks.

$1.25 Trillion Mortgage-Backed Security Purchase Program

Only $211 Billion left in the program!  March of 2010 is right around the corner, so that leaves about $11.7 Billion a week.  This will put pressure on interest rates. 

Locking Advice

Again, rates are just spectacular!  It may be prudent to lock in, whilst the gettin’s good!  If you do choose to float, just have an itchy finger on that lock button!  Have an excellent week.

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