August 27, 2010
August 27, 2010 by admin
The stock market finally caught a relief rally on Friday, as the DOW jumped well over 100 points on optimism from a reassuring speech from Fed Chairman Ben Bernanke. The DOW was able to get back above the 10,000 point market as investors took advantage of lower equity prices across the board on the market. The relief rally follows four days of heavy selling as investors grew weary of the fallout from disappoint resale and new home sales reports that sent shock waves through the market and firmly entrenched the idea of the double dip recession becoming a strong possibility. Yields on the ten year treasury bond jumped back above 2.65%. The jump in bond yields is likely to push long term mortgage rates up from their historical lows. The average thirty year fixed rate mortgage loan was available at just around 4.37% to start the day on Friday, but will certainly be higher for borrowers trying to lock this afternoon and potentially into next week.
