Historically low interest rates finally moved the needle for refinancings as the MBA said they rose 17.1% for the week to the highest since May ’09. Purchases however can’t get out of their own way as they fell 3.4% and are just 3.5% off the lowest level since 1997. This economic response to low rates is indicative of our whole economy that has the Fed now pushing on a string. In times of deleveraging, lower rates only encourage refi’s, not new economic activity whether the purchase of a home or the expansion of a business. ABC confidence rose 2 pts to -45 and is now 1 pt above its 1 yr avg. Portugal sold 3 mo and 12 mo bills and raised more than expected. Fitch did a stress test on the important European insurers and said they passed “based on the hypothetical scenario of a default on Greek government debt” and its “knock on effects on the sovereign debt of Portugal, Ireland, Spain and Italy.”
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.