10-year note fell to as low as 3.36%

INTEREST RATE UPDATE
Current Trend Direction:  Moving Sideways
Risks Favor:  Locking on the Dips
 
Mortgage rates are lower this week as the yield on the benchmark 10-year note fell to as low as 3.36%, despite the continued rise in stocks.
 
This week brought in some important economic data, more importantly for interest rates, was the Consumer Price Index (CPI) which measure inflation.  As the Federal Reserve Board members thought last week the inflation numbers came in tame and is expected to continue for the next several months.  This had much to do with rates staying as low as they are.
 
Tuesday was the one-year anniversary of the collapse of Lehman Brothers, which was most caused by "mark-to-market" accounting.  Mark-to-market or fair value accounting refers to the accounting standards of assigning a value to a position held in a financial instrument based on the current fair market price for the instrument or similar instruments.  One day before, on September 14, 2008 the Dow opened at 11,416; it subsequently lost 500 points on that day alone.  It eventually tumbled to 6,547 on March 9th, 2009--the day before mark-to-market accounting was addressed. The Dow closed today at 9,820.
 
Have a great weekend!..Tom
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