The Veridian Blog

The benchmark 10-year bond has never seen such dizzying times.  Last week's roller coaster movement was one of the most volatile in history and things haven't really let up since.  Moreover, investors are tense and sensitive about where the US economy is headed - as if every economic report has market-moving potential

During this time, we advocate locking if your close of escrow is 30 days or less.  If greater than 30 days, we recommend floating your rate as the longer-term trend will likely be downward. 

Tomorrow, the Federal Open Market Committee concludes its first meeting of the year.  They are widely expected to decrease the Federal Funds target rate an additional 0.50%, bringing it down to 3.00%.  This will have an immediate impact on most lines-of-credit, auto loans and credit card balances.  As for mortgage rates - your guess is as good as mine right now. Even if they decrease it as expected, there are many factors that can potentially influence its direction - namely the huge GDP report and unemployment on Friday. 

Stay tuned - it is certainly a never-before-seen wild and wacky market that is both frightening and fascinating!