AgentIndustry News

Credit losses too large to recognize

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Mortgage rates are about the same as they have been averaging: 6.25 percent for basic conforming loans. All other markets are in frantic action, a perfect mirror of the struggle between two groups for accurate perception of the economy. One crowd is plugged into the global economy, technology and stock-market optimism; to them, business has never been better. The second crowd is the bond/bank bunch: we weren't there at the time, but things look a lot like the run in to the 1930s. Both are correct. However, only one will stay correct. The first camp's strength may pull us through -- or not. The struggle has continued since August, and today was the best yet. In the single datum most important to markets each month, October payrolls grew by 160,000, a big, surprising "Camp One" victory. Economic strength should relieve the anxiety driving money to bonds, and on the way out, drive interest rates up. Not today! A whole new wave of "Camp Two" panic overtook the markets, thou...