September 1, 2010
September 1, 2010 by admin
The stock market got into rally mode today to start the month of September with a bang. Surging by over 200 points in heavy trading as investors rallied into equity positions. The strong rally in the DOW follows a steady decline of the DOW in the past 60 days as the “double dip” recession fears have crippled the market and pushed investors steadily into the bond market. Yields on the closely followed ten year treasury bond rose by 10 basis points as the ten year finished at 2.57% on Wednesday. The push of investors into equities could send September mortgage rates heading higher as investors take money out of the bond market. Long term thirty year mortgage rates were still available under 4.5% with many national mortgage lenders on Wednesday and fifteen year loan terms were offered in the upper three percent range. The recent drop with interest rates has helped push a surge in refinance mortgage applications, but has not had a meaningful impact on home buying. The month of September is generally regarded as bearish for the stock market and today’s great start could certainly disappear quickly as a number of key economic reports will come into focus starting next week focusing on jobs and employment growth, which will have a large impact on the market.
