Thursday, May 27, 2010

Mortgage rates fall to lowest level of the year + Stocks surge - bonds drop - China reassures on Europe debt


[mEDITate-OR:
not see that RE interest rates are going UP next week....
 
Far more important is the fact that China HAD to protect the EURO...
Europe recently became China's largest buyer of "stuff"...
now larger than U.S.
 
When the EURO dropped like a rock against the US DOLLAR...
it also dropped like a brick against the Yuan.
 
That has hurt China much worse than it has hurt U.S.
 
Goods are now much more expensive from BOTH China and U.S.
While that hurts U.S. too, it destroys over one third (1/3) of China's exports.
 
They simply COULD not tolerate that.
 
And, what else happens..., bonds for U.S. dropped like a brick.
 
So..., next week the RE interest rates probably will surge UP.
 
If we thought that the RE markets were going to go back to "normal"
we were very sadly wrong.
Wilted rose emoticon
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Stocks surge, China reassures on Europe debt
But worries about U.S. recovery linger after some disappointing data
Stocks had another turnaround Thursday and rocketed higher after China reassured investors it doesn't plan to sell the European debt it holds.
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Bond prices tumbled, pushing interest rates higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.35 percent from 3.19 percent late Wednesday.
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Mortgage rates fall to lowest level of the year
National average for a 30-year fixed loan slips slightly to 4.78 percent
Turmoil in the markets and the European crisis are making life easier for American homebuyers and families looking to refinance: Mortgage rates are inching closer to a record low.
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Video
China is going all-in on Europe, saying it's not cutting its European investments and that the region is a key market for China's currency reserves. Tom Higgins, of Payden & Rygel, tells CNBC what this means for Europe and the global economy.
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