Mortgage Rates Climb due to Uncertainty

Mortgage interest rates are now on the rise after a healthy uptrend and stable range were shattered by new Fed policy that got little attention in the news but has had sweeping effects across the markets, particularly the bond market.

It was yesterday morning when the Fed announced they would be opening their window to foreign investors and pledged U.S. dollars would be available for the next three months for these investors to borrow and or swap out for other failing world currencies. Honestly I do not have much information on their play here because its on the down low... hush hush... a play made by those looking to promote a new world order and bring everyone and everything under a single regime and banking system...

Forgive me for this blog getting political but unfortunately our monetary system has been politicized and there is no way around it anymore. One would expect the IMF to step and and back the Eurozone, which they have done, the Fed moving in behind them is just another backstop to help ease concern.

Long and short, U.S. tax dollars or newly printed dollars, or electronically created currency will be given the the European Union at the expense of the United States. What effect does this have on you?

Immediately the ten year treasury yield shot up from 2.000 to 2.1000 in yield. Due to concerns about inflation most likely, this forced our markets down ten ticks yesterday. The damage however is most likely far from over. The real problem is this move shattered the confidence many investors had in the MBS markets and blew straight threw our support. Now we are down three on the day... and what was an uptrend now looks like it may be a down trend.

If our Treasury Secretary and the Fed continue spending and giving away money as they hope to, I don't expect rates to stay low despite their claims that they will.

Time will tell. Some choppy waters and questionable rates ahead of us... Keep an eye on headlines.