Impressive day! Dow picked up 235 points with great news from Lowe's (better than expected earnings) and an upgrade to a "buy" rating for Bank of America from Goldman Sachs.
BIGGER news for the Real Estate world: The National Association of Home Builders put out a "builder sentiment" report and it was the highest level we have seen for 8 months. The article put out by NAHB went on to say that
NOW is potentially the opportunity of a lifetime to build or buy a house.
The FNMA 4% mortgage backed security was DOWN by 25 bps today closing out the day at $99.88... Important note here: it fell below the 25 and 50 day averages. The "averages" provide a "floor of support" for the bond...and
when it falls below them: it is harder to get back above that price for some reason. It is so odd to actually see the pricing get right up to that 'resistance' point and then bounce lower again.
Rates are still in the 4.75% range though on the 30 year fixed note.
Oil is back up to nearly $60/barrel. Money is flowing into other things as the summer ramps up. This happens every year...demand is up. The price at the pump has risen every day for the last 3 weeks...and will likely continue to go up. Green energy proponents are cheering and await a fresh interest in what they have to offer.
Have a great evening!
