According to Bankrate.com, the average 30 yr mortgage rate last night jumped 11 bps to 4.02%, the highest since Dec 1. While rates are still extraordinarily low, the one day jump was the largest since Dec 15, 2010. The monthly payment for a 30 yr mortgage assuming a $200k amount only goes up $10 per month on this one day move but we can’t forgot how dependent the economy and markets have become to artificially cheap money. Thus, it will be higher rates, not high rates that create obstacles if this continues. Meanwhile, gasoline prices rose another .01 yesterday according to AAA to $3.82 and the CRB food price index closed yesterday at the highest since mid Nov. In Asia, India left rates unchanged as inflation there remains persistently too high for their taste. The Shanghai index fell to a 3 1/2 week low on continued growth concerns after foreign direct investment in China unexpectedly fell by .9% y/o/y, down for a 4th straight month and well below expectations of a gain of 14.6%. In the US, as Apple continues its parabolic move higher, the 4th brokerage firm today in 3 days has raised its price target.
AAII: Bulls 45.6 v 42.4, Bears 27.2 v 29.0
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