Saturday, January 26, 2008

Trailing market's wild ride this week

Wow. The basics: mortgages were at 5.75 percent last week, Monday a holiday, Tuesday markets stunned by the Fed's 0.75 percent cut; mortgages early Wednesday morning fell to 5.375 percent(!), wholesale rate-locking Web sites crashed in an hour, mortgages back up to 6 percent(!!) by Thursday noon. Citibank wholesale raised its rates nine separate times in 24 hours.

Summary: The economy -- including housing -- is probably better than feared, and we'll all be OK. However, this was the worst week for economic public policy in my memory. We'll survive it, too.

Read the entire Lou Barnes article at Inman News

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