It was a great day in American history to hear about the successful campaign on the hunt for the world’s most notorious terrorist. I have a tremendous amount of gratitude for our brave men and women of the armed forces. As a country, we celebrate the success, but remain vigilant to the aftermath of such an event. As for mortgages, what effects does it have on the markets? Really, none.
We must not assume that this is an indication for banks to loosen guidelines and open up home ownership to anyone with a heartbeat, (i.e. 2002-2006). Perhaps the psyche of our collective financial minds will enable the markets to loosen up a bit. But quite frankly, the DOW,
NASDAQ, and S&P have all performed quite well in the past nine years after the most historic terrorist attack on our soil. I do not anticipate any change in the markets due to the great news, but if it does, let’s hope that America can find a way to save a few billion dollars since our deficit has reached epic proportions. In the mortgage and real estate industries, I am fixed on the ten-year bond. It indicates the short-term future of 30-year interest rates for mortgages. There are other market indicators that are used, but primarily the ten-year bond is the key indicator. So, if you are mortgage shopping or interested in buying into the market place, use the market indicators to steer you into the right direction instead of the latest political successes.
Jeff Macke says it best, “this is about patriotism; markets are about pragmatism.” He continues, “this is an edgeless trade.” After our toast in celebration of our success as a country, let’s refocus on the important matters. Get back on the job and work diligently to achieve success. After all, isn’t that the American way?
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