More of the same is what Mortgage Participants should expect from the rest of this week. The same as what exactly? The same as we’ve seen for months in terms of data parsing and now with the added “benefit” of increased volatility with Mrs. Yellen telling the world a hike in the Fed Funds rate might not be so far in the distance. And increased volatility makes it very hard to read the tea leaves with any accuracy. So here’s a brief summary of all of the things going on in our world which is making this so hard on everyone from borrowers to Fed Governors: 1. China seems to be slowing more which has ripple effects through Asia and the world. Can the government fuel enough projects to hit their 7.5% growth target? 2. The true growth trend in the US economy is still being hidden by weather issues. Are we weaker than we think? 3. The equity market is always bullish and there’s money to be invested…so using equities as a measure of reality doesn’t work…but it does increase volatility. 4. Forget about the kind of war with Russia that has bullets, the war of economic sanctions can be far more deadly and who knows how far this will go. 5. Although Japan has had a great run of late impending tax hikes and concern that Abe’s massive liquidity injections arent stoking long term inflation could leave Japan weaker this year.
Posted on: Tue, 25 Mar 2014 14:51:24 +0000
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