Mortgage rates hang in limbo

American economy in 'unstable' condition

Three straight weeks of mortgage-rate stability (low-fee loans 6.25 percent-6.375 percent) have concealed a truly unstable situation.

Most upsets in the financial markets coincide with fast-moving events, painful but well-understood, like the blown stock bubbles in ’87 and ’00, or the freight-train Feds in ’80, ’81 and ’94, or the foreign currency collapse in ’98. This time, markets are unstable because nobody really knows what the hell is going on.