After yesterday’s increase, the markets are relatively stable, with short term trend to decrease a bit today. Investors are beginning to digest the news of the EU assistance program, and are yet a bit skeptical as to whether this is going to contain the problem. So, some money is flowing back into US markets today.
Domestically, inventories of US wholesalers rose for the third month, in March, in an indication that companies are stepping up supply to meet expected demand. The reported sales number itself rose 2.4%, the most since November.
The numbers are generally rising across the board in more jobs, rising wealth and—reportedly—easier credit. Consumer purchases are said to grow at 3%, and within inflation target range of 1.2%. The reports seem to me to smack of a little more sunshine than I think is objective — which is to say, I think they’re cooking the books a bit. But that’s the prevailing belief out there; and the markets will react to that accordingly. Even so, I still advise clients to refinance now, as I think the fundamentals are very challenged (in part, because I believe that they are cooking the books: I always personally prefer truth; and get a little unsettled when I don’t think I’m getting it.)
Anyway, for today, the news is such that rates will be sideways to slightly down (pending other breaking news.) Again, feel free to subscribe to our free “alert to lock” notice, in the tab above.
Technically (and I really do need to do a post here soon for people who don’t know what that is) the chart favors around 3.54%, with support to lower rates at about 3.44% and then 3.41%. Numbers show resistance to higher rates at 3.62% and 3.65% — the “nodes” that the market wants to trade in.
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