Saturday, December 26, 2009

Freddie Mac

There is an article in the Washington Post quoting Freddie Macs latest survey. Mortgage rates actually ticked up to 5.05% from 5%. They also predict 6% before the second quarter. This is great for the dollar and bonds. Bad for the market. We will see!!
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2 comments:

  1. dukebravoDecember 27, 2009 at 9:26 AM

    Great for bonds in what respect? Rising interest rates will pressure bond prices lower, right? Anticipation of this move is likely what moved TBT against you at the wrong time.

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  2. nicasurferDecember 28, 2009 at 5:04 PM

    My theory is that tighting of money supply would mae the dollar more valuable and bonds more valuable. Currently TLT pays 4.6% tax free. If the value of that dollar increases it would create a win win.

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