Inman news reported a possible 3 percent rise in interest rates by May 2005.
"The 10-year T-note broke below 4 percent for the first time since last fall, but could not hold; mortgages had a couple of days at 5.5 percent but are now back to 5.625 percent.
Nothing in economic data accounts for continuously low long-term rates. The stock market is a little shaky, earnings nervous-making, which helps, but claims for unemployment insurance have fallen to the lowest levels in five years.
The Fed is going at least another .5 percent to 3 percent by May, and 3.5 percent by August is a better bet. The only way a tightening Fed helps bonds is by creating the hope that it will mash the economy by accident, and the economy is too healthy for that."
Published 2/14/05 Inman News - Lou Barnes
Click here to link to the full article.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment