Tuesday, December 15, 2009
Improving Economy Means Higher Rates
The U.S. economy lost 11,000 jobs in November which was a drastic improvement from the disaster of job losses in January. As the economy improves, investments will flow from fixed to equities- mortgages to stocks.There's a massive MBS sell-off in process. Rates lost three weeks of gains in one day.
- Job loss peaked in January 2009
- Job losses are continuing even as the economy is growing
The jobs report was much better-than-expected, proof that the U.S. economy is in recovery. Bad news for rate shoppers.
If the econonmy continues to show signs of improving, count on rates to increase rapidly.
