Financial Update by Maurice Soussé

I thought I would knock two birds with one stone and send you the weekend rates along with the news that the FOMC (Federal Open Market Committee) did not raise the interest rates at this months meeting. Rates remain between 0-.25% due to the uncertainty in the Asian and European markets. Is that good for us? It certainly sparked a rally in the bond market today and hopefully we can see a slight drop in rates tomorrow.

In the long run, is that actually better the US economy? Financial institution, Wall Street and economists feel that a raise in rates to .25-.5% would have been appropriate and better for the market place at this time. If the FED were to raise rates, then they would not have to address that issue again for probably 12-18 months. The markets could then settle down and not have the apprehension that “rates may soon rise”.

Furthermore, I am not necessarily of the school that a rise in the FED rates would affect the 10 year treasury yields. The 10 year yields affect Mortgage Backed Securities and ultimately mortgage rates.

Do you know there are only 10 weeks to Thanksgiving? As we are nearing the start of the 4th quarter of the year, have you reached your goals so far? If you haven’t, don’t feel alone, but, remember the saying by Will Rogers who stated “even if you are on the right track, you will get run over if you just sit there”.