Jeremy's Blog

Is the refi boom over?  Not yet but it sure looks like it could soon be.  Mortgage rates saw a major increase yestarday of nearly .5%.  Why???

Basicaly, it is finally hitting home that the Fed has a serious problem; the problem is how to keep mortgage rates down, the housing markets are the key to any economic recovery and one of the keys to getting the housing sector back on track is keeping mortgage rates affordable and low. It was widely thought that buying $1.25T of MBSs would do it. Not the case, the problem is that there is just too much debt.  Who then will fund our deficits and the Obama Administration's aggressive fiscal budgets? The US is completely dependent on foreign investments to fund our debt and that point is beginning to take front page. Big hit in the equity markets this afternoon on the hard hits taken in the mortgage markets. Without lower mortgage rates the economy isn't going to recover at the pace recent thoughts had developed. If housing and home prices are not stabilized there isn't going to be much of a recovery based on the timeframe markets had been expecting.

Hold on tight the ride is just begining!  This is what happens when you SPEND< SPEND< SPEND!

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