MORTGAGE RATE COMMENTARY

Dow Hits 13,000 and Milwaukee Mortgage Rates Inch Up

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The rose above 13,000 for the first time since May 2008. This after European leaders cleared the way for another bailout of Greece. This take any immediate threat of default off the table. This will have a negative effect on rates.

The Ten Year Treasury yield has risen from 1.90 last Thursday to an intra day high of 2.08 today. The Volatility Index was at 19.00 to start the day and has since retreated to 17.65. A reading under 20 is considered a save environment to invest. The VIX had a reading in the high 40's in October. It appears investors are looking at the glass as mostly full.

Later this week will take a look at manufacturing numbers and consumer confidence. Based what we have seen in corporate earnings we should see an up swing in both numbers.

I have said in the Mortgage Commentary many times that fear and greed rule the markets. The VIX is showing us the fear is subsiding. The Dow touching 13,000 shows us that greed is taking over.

Milwaukee Mortgage rates remain low. The current market environment may start to move rates higher. Remember the Fed said they would keep rates low for an extended period of time. They did not say they would stay at historic lows.