Video Mortgage and Financial Market Update and thought of the day for Nov 21st
By Travis Neliton, Travis Neliton NMLS 283894
(Caliber Home Loans CHL NMLS# 15622)
Well, I shouldn't speak so boldly yet but the DOW is actually in the black most of the morning and may close in the black. Pretty scary when you look at the numbers with the DOW dropping below 8000 yesterday. With that, since October of 2007, the DOW has dropped nearly half of its value from 14,164, to 7,988 yesterday, a 47% decline! The only other time was in the 1930's with the great depression has there been such a brutal bear market. Mortgage Backed Securities continue to hover around that important 200 day moving average and as long as we stay above it, rates will continue to be in the upper 5% range with an APR close to 6%. Please watch the video about an interesting phenomenon called Deflation and how between a recession and deflation, that is an ugly mix for the Feds to address...