Phil Grossfield's Blog


Economic Outlook, HARP, Day Turns Into Night

BONDS opened strong this morning but has lost ground.  Rates came out late this morning so the early movement is likely already priced in.  I’ll keep watch throughout the day….

My Schedule…and a little extra:   I apologize for the boring Extra lately, but all my attention has been on this new HARP 2.0 program.  I get a lot of calls and emails about it so I just want to make sure everyone is comfortable with it.  As you are probably aware by now, our HARP program was altered yesterday…we are now limited to 105% LTV and 110% CLTV.  Unfortunately, we felt that with other players changing their guidelines, it wouldn’t be prudent to continue to offer unlimited.  Of course, this could change back but for now….  Tomorrow I’ll write something a little more fun.   Mystery Lyric:  Shadows grow so long before my eyes, And they’re moving…across the page — Suddenly the day turns into night, Far away…from the city — But don’t…hesitate…’cuz your love…won’t wait — Answer.   My Market Watch:  Jobless Claims reported the lowest number in 4 months.  Think about it…“Jobless Claims” is a report that specifies people without jobs…if that number is lower, then it means the economy is better.  Remember, when traders feel the economy is improving, they will throw their money into the stock market.  If they are putting money into stocks, then they are not putting money into bonds, and, they are probably selling off bonds to get money to put into stocks. This analysis means rates get worse.  The trend lately is not good for rates…for things to turn around, something semi-dramatic needs to happen.  If my sister asked me what to do, I’d tell her that I’d be ready to lock on a moment’s notice.  Disclaimer:  I am not a specialist or expert…please make your own decisions based on your own research when deciding to lock or float.   My Schedule:  I’m dropping my parents off here, then finding a coffee shop to work in, then talking them there, and then finding a coffee shop to work in…you get me? 

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