iHola! I have just returned from Cuba. For those of you who have never been you should go! For those of you who have, I now understand what an extraordinary country it is. It's all about the people. Yet, on another note back to high finances…
Bond yields jumped this morning as Draghi told the EU that they may consider more tapering soon. European yields jumped and we followed. Later Ms. Yellen's comments didn't do much to move the markets which indicated that 10-year bonds closed at 2.20%. The Dow fell by nearly 100 points today as the Senate announced they were delaying the vote on the new health care bill. Not enough votes, I presume?
Consumer confidence also came in above expectations but reading between the lines future expectations fell. It is funny that the markets react to consumer confidence which is "soft data" as it is just the consumer’s opinion. However, the "hard data" is sending the opposite messages as Durable goods, Chicago Fed, and other real stats point to an economy that is less robust. We have a few more big numbers rolling out this week. It is quite likely that bond yields will fall again if there is not opposing noise in the world.
Mortgage rates for the most part are just where I left them a week ago. The 30-year fixed can be found at 3.75% with 0 points for conforming, as well as jumbo. My favorite 7-year ARM is holding tough at 3.00%. Rates still look they have more to drop and today's blip in yields is just a breather.