Market Update- August 25th, 2011
By John Sauro
Fed Chief Ben Bernanke’s speech at Jackson Hole Wyoming delivered little news of what the Fed will do to help the ailing economy. Markets were hoping for news of additional stimulus. The Fed Chairman said, the Fed is ready to use additional tools as appropriate, but did not list those tools.
Many experts believe the Fed has run out of bullets and that it is now up to Washington to come up with a realistic budget.
Mortgage Bonds continued their rally from Thursday to settle at $100.78, $1.688 lower than the high, reached on August 18th. As a result Mortgage Rates moved slightly higher with the conforming 30 year fixed rate at 4.125%.
Economic News
Consumer Sentiment Sinks to 55.7 in August, In line with Estimates.
Second-Quarter Economic Growth Revised down to 1.0%. Slightly less than expectations.
Jobless Claims rise more than expected. Up 5,000 to 417,000. Still above the important 400,000 number.
New Home Sales fall more than expected. Down 0.7% in July.