Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – April 20, 2010

Continued Volatility Will Push People To Want To Lock

Fighting For Investors

There are no real economic factors to report today, so Bonds will move in the opposite direction of Stocks while each fight for investors’ attention.  I think Stocks will win, however, later in the week, and into May, expect Stocks to lose and Bonds to rise, lowering interest rates…but only expect that if you have any trust in what I have to say…just puttin’ it out there.  I feel Stocks are primmed for a reversal.  As earnings reports continue to roll out, this and next week, I don’t think the Dow can remain over 11,100.

Watching England

The United Kingdom (UK) Reported a Consumer Price Inflation rise of 3.4%, last month.  The government mandates inflation to read at or below the 2.0% level, similarly to the United States.  England is suffering from a horrible recession, and therefore their government is not prepared to raise their interest rates, to combat inflation.  However, eventually, they will be pressured to do so…and the longer they wait…the harder the inflationary pressures and results will be; pushing rates higher…resulting in a competition with the United States…as the United States will have to raise their rates, to be competitive in a world market.

Treasury Auctions

Tomorrow, the United States’ Government will announce the value of the auctions set forth for Monday through Thursday of next week.  The results of that auction might surprise people, as they have TIPS on Monday, and 2, 5, & 7-Year Treasury Note Auctions on each consecutive day.

Can You Stomach The Ride?

Locking Advice

If you can stomach the ride…and try and be patient…I’d float into the next couple of weeks and see if the Stock Market moves lower, benefiting dollars for Mortgage-Backed Securities and lower rates.

Related Must Reads

Why Be Leery…A Look Into Short Term / Long Term Treasuries

What To Subscribe To:

Get Our Twitter Updates
Get Our Blog Blast
Connect With Us On Facebook

This entry was posted on Tuesday, April 20th, 2010 at 7:37 am and is filed under Chico Home Loans, Home Buying, Interest Rates, Weekly Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Name (required)

Email (will not be published) (required)

Website