Market Update
Friday March 11th, 2011 6:50 PM ET
By John Sauro
I first want to send our thoughts and prayers to the families affected by this morning’s earthquake and tsunami in Japan.
This should remind us how fragile life is and how quickly things can change.
Another Roller Coaster week for Bonds.
News form around the globe has been responsible for the volatility in the markets. Now Saudi Arabia the world’s largest oil producing country is the focus. Hopefully, King Abdullah can stave off a revolt, as he has allocated $36B to increase wages and boost programs.
However, the short term focus will be Japan. Typically, devastating natural events drive money into bonds, but that’s not the case this time.
That’s because the Japanese are selling some of their holdings in Treasuries and Mortgage Bonds, in order to put money back into their country during this emergency. Japan is the second largest holder of our debt at $877B, so selling a small portion has an impact on Bond prices and raises interest rates.
Update on FINREG (Financial Regulation)
Protect your homes value and your right to affordable home financing.
Two law suits were filed against the Federal Reserve this week, hoping delay a rule that could add further pressure on the credit and real estate markets.
The first was filed by the National Association of independent Housing Professionals (NAIHP). The other was filed by the Association of Mortgage Professionals (NAMB). I am on the Government Affairs Committee for NAMB and will be traveling to D.C. this week for upcoming meetings with members of the House Financial Services Committee, for the purpose of delaying or even better repealing these very regulations that can be so very damaging to an already fragile real estate market. Wish me luck.
If you haven’t already done so, please visit www.RepealFinreg.com and see why these regulations will further cripple the lending and housing markets and be sure to sign the petition and send the pre written letters to your elected officials.
Thank you.
My Bias remains locking into mortgage rates at this time.??