February 19, 2009
February 19, 2009 by admin
Stocks continue to move lower as the sentiment amongst investors remains one of fear and concern. The stock market could dip below levels last seen in November of 2008. The market is digesting two key economic reports today, the ppi report which showed that the market saw wholesale prices increase in January for the first time in the past six months. The jobs report also painted a grim picture for the economy as jobless claims are fast approaching the five million level. Wednesday the Fed predicted that the unemployment rate is likely to top 8% in 2009.
Freddie Mac reported fixed mortgage rates remain in the low five percent level. The yield on the ten year bond rose to 2.81% and remains well below the 3% level. The spread between the ten year bond and the average rate on a thirty year fixed mortgage remains well above 2%, a signal that investors in mortgage backed loan securities are still seeking a premium on these investments.