HomeLoans Blog

I slept on this last night. The stock market and the bond market really have no direction. We have to pick to lock or not to lock, in a directionless market.

OK, here goes.

I think corporate earnings are enticing investors into the stock market, so as corporate earnings are generally good investors will move into stocks.

This movement will push bond prices down, and interest rates will begin to tend upwards.

This is my prediction over the next two weeks. It is likely that continuing economic problems - government stumbling, bad consumer spending, bad unemployment, poor manufacturing, European woes, etc will turn investors back to the safety of bonds.

And that is what we are looking for - how the investors are responding.

Good luck with you decision. My thoughts are still to lock.

The decision to take a 4.25% 30 year rate will seldom ever be the wrong decision. :)