Mortgage Blog

A lot of clients wrote me emails this weekend
about the interest rates trends after S&P
downgraded USA credit rating. Here is my
reply:

1)There will be lots of volatile wither
in stock market or bond,ss are the mortgage
rates.

2)In The short term, the interest rate
will go up 0.125% to 0.25%; but it will
go back lower to the history low level.

3)The stocks and bonds can not go all the
direction all the time. Even if both stocks
and bonds sell off Monday, if the stock selloff
continues, investors will still purchase bonds,
which will drive the interest rates lower.

4)US Treasury bonds still the safest investment
than the bons from other EU countries.

Don't panic if you see your portofio was down
5% to 10% last week. The professionals are not
doing better. The best strategy now is:
holding cash, wait and see.

Have a nice week.