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May 04

Rate Watch 5/4/12

Interest rates have remained steady for the past two weeks, unusually steady! Today I posted a slight improvement on the conventional 30 and 15 year rates, how much lower can they go? 

The jobs report released this morning showed an employment increase of 115,000 new jobs added in April, about 55,000 less than expected.  The unemployment figures also improved slightly. Personally, I do not believe these reports, a decline in unemployment claims is not an indication of new jobs created, simply that benefits have run out.  Mortgage bonds reacted favorably to the news, interest rates decrease when the price of mortgage backed securities increase.

I have watched interest rates for a few decades and it seems like Friday is usually an uptick day, not down.  That makes sense, some money managers sell paper on Friday just in case we get tangled up in a war over the weekend.  Those Canadians have been very quiet lately…  

 

To take advantage of the low interest rates visit my online application site or print and use this simple form to get started. If you prefer we can do it over the phone, call my direct line during normal office hours, (502) 753-4127.

 

 

 

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