Monday Market Commentary

by Alex Stenback on November 5, 2007

Last Week
The Fed cut the Fed funds and discount rate, a fact which genuinely surprised very few.  Mortgage rates held their ground at near the lowest levels in a year.  This despite the fact that Friday’s surprisingly strong employment report showed 166K jobs created in October – news that would normally send rates upward.
This Week:
A Markedly thin economic calendar will have mortgage bond markets (which dictate mortgage rates) taking their cues from the stock market.  Citigroup has announced a gigantic write-off in mortgage related assets, which may help mortgage rates, as funds flee a stock market (likely to be weighed down by trouble in the financials,) for the relative safe-haven of bonds.  Bernanke also speaks this week before congress, which can roil markets.
This Week’s Economic Calendar [Barron's]

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