A very important week is in store, with two important announcements due toward the end of the week. As you know, the “mark-to-market” accounting issue has been discussed in this newsletter many times, and this Thursday should be a big day on that front. The Financial Accounting Standards Board (FASB) is set to announce their ruling on whether to modify mark-to-market, and perhaps allow cash flow analysis to determine valuation of financial assets. Not a coincidence, the strength we have seen in Stocks over the past couple of weeks has been fueled by speculation that mark-to-market will be modified, thereby helping reinvigorate the financial system of our country. I will be watching very closely to see what happens and how the markets respond.
On Friday, the Labor Department will release their Jobs Report for March. Last month’s report showed that 651,000 US jobs were lost in February, while revisions for the prior two months showed that an additional 161,000 jobs were lost between December and January. Given that last week’s Initial Jobless Claims report showed that the number of people collecting state unemployment benefits has reached a record high – jumping to a seasonally adjusted 5.56 Million – it will be important to see what Friday’s report reveals.
As you can see in the chart below, Bonds are currently trading between key technical levels, with a ceiling of resistance overhead, and a floor of support underfoot. But remember: Strong economic news – such as a positive change in the “mark-to-market” situation – will likely cause Stocks to rally, and Bonds and home loan rates may worsen in response.
Call the Freeman/Davis Home Team at 919-649-6638 and let us put you in contact with our premiere Lending Manager, Beth Prochaska. Together, we can find you the home of your dreams at financing terms that you will find favorable now and in the many years to come. Let us be your “Trusted Advisors” in real estate and mortgage finances. Visit us online at www.HomeSearchRALEIGH.com and www.FreemanDavisHomeTeam.com. You can comment on our blogs anytime and we would love to hear what you have to say at www.iRaleighBlog.com and www.HomeSearchRaleighBlog.com.
Tags: finances, mortgage, raleigh real estate