RateWatch Jan 12 – Tomorrow We’ll See

Markets: Bonds were up slightly today, trading up against a line of resistance.  For the uninitiated, a line of resistance is an average, usually a 25-day or 50-day or 100 day, or what have you, that cuts across the bond price chart.  Those lines form “resistance”, against which bond prices have to push in order to move higher.  They also form “lines of support”, which keep bonds from moving lower.  Generally speaking, the markets will need something unusual in order to punch through a line, some news that is unexpected.  Nothing like that was in the offing today.

Analysis: Tomorrow and the next two days are the real kickers, with the Fed Beige Book tomorrow, and the retail sales and consumer confidence numbers Thursday, followed by a blizzard of numbers Friday, headlined by the Consumer Price Index.  Weak numbers will be good for bonds, strong numbers will be bad.  Good for bonds means good for interest rates.  I realize that means that a bad economy is good for interest rates, and that’s not strictly true, but for rough purposes, that’s where we are.

Actions: Watch for RateWatch on Thursday.  That’s when we’ll know what direction the market is heading.  But if you’re in the market for a short sale, your real deadline for getting an offer in is the end of the month.  Banks are moving glacially on approvals for those.  Remember that you have to be under contract by April to get the first-time or long-time homebuyer credit.

Thursday RateWatch will be interesting, as that is the date of our seventh annual Twelfth Night Charity Ball, and even that we throw to help raise funds for a local charity.  This year it’s the Heart-2-Home Foundation, also known as Utah Home Makeover.  I’ve been on their board for a couple of years, and I really believe in the work they do.  If you go to the website – www.lehilender.com – there’s a link to more info.  If you’re out of state, and many of you are, you can buy a memorial ticket that will send some badly-needed funds to this great organization.  Please take a second.  I’d appreciate it.


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