Financial Update by Maurice Soussé

Happy New Year.

I believe today is the last day we need to say that, isn’t it?

Interest rates took quite a hit this week with 10 year Treasury bonds jumping from 1.74% last week to a closing bell of 1.91% today. This increase has moved rates up and changed investor sentiments on how much longer interest rates can stay down. Treasuries have been the safe place for the past several years as the uncertainty in the stock market has investors tied up in government guaranteed money.

Most investors feel that Treasuries are oversold and will continue to go down and trade between 1.6 to 1.8% during most of 2013. The FED also committed to low rates and buying mortgage backed securities until unemployment rates come way down.

Take a look at our 30 year fixed rate. They still look great.

As a golfer I love the quote from the great Bobby Jones who said “I never learned anything from a match that I won”. Interesting…

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