Nov 032014
 

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By G. Steven Bray

After hitting multi-month lows last month, mortgage rates have been leaking slowly upwards. It’s hard to pinpoint exactly why. Maybe rates are following the stock markets, which are hitting record highs again. But the last time stocks rallied, rates were 1/4% higher, so that seems to bust that correlation.

Maybe it’s US economic data, which generally has been positive. However, rates hardly moved on the days when data was released.

Maybe it’s European economic data, which has been stinky. We saw better correlation here when rates were falling.

Maybe markets are uncomfortable that rates dropped so much last month and simply are leaking away some of those gains.

Whatever the cause, it’s a risky market for floating your interest rate with big events this week. The European Central Bank meets Thurs, and the jobs report is Fri. Both have moved rate dramatically in the past. Float safely, my friend.

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