Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – May 12, 2010

Rates On The Rise

3-Year Notes Fare So-So

The 3-Year Treasury Note Auction fared only so well, yesterday.  And the market is poised for another adequate auction of the 10-Year Note Auction, scheduled for today.  Remember, the longer the term of that note, the harder to sell it at reasonably low rates.

European News

Spain announced that they have a financial strategy to narrow their budget deficit, and Germany reported a Gross Domestic Product report that was unexpected.  This caused Stocks to rise, all over the world, at the expense of bonds, and therefore, interest rates.

John Paulson Speaks

Hedge Fund Manger, John Paulson, the man who made billions of dollars calling the collapse of the housing market, in 2007, has indicated that he sees housing prices rise 3-5% this year, and 10-12% next year.  This is huge news, as he’s called a lot of other shots, too, and even if he’s fractionally correct, and housing prices only rise 1.5%, if someone buys a home for $100,000 and puts 10% down ($10,000), in one year, they will have gained $1,500 on that $10,000.  A 15% gain on your investment, is pretty darn good these days!

Treasury Auctions Are Somewhat Disappointing

Locking Advice

We moved to a locking status, as news from Europe continues to be positive, which is taking the sails out of US Treasury Auctions and Bonds offerings.

What To Subscribe To:

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

This entry was posted on Wednesday, May 12th, 2010 at 7:35 am and is filed under Chico Home Loans, Home Buying, Interest Rates. 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Email (will not be published) (required)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