Nothing Makes Sense
Higher interest rates continue to put the brakes on mortgage lending as the MBA or Mortgage Bankers Association reports that mortgage activity fell .7% last week, refis’s slipped .7% while purchase apps gained .4%. The 30-year contract rate for a conforming loan increased fractionally to 4.27%. That said mortgage activity continues to slip following its downward trend began in early September.
Meanwhile in bizzaro world as the domestic and international scene has become. India has moved from confiscating its citizen’s money to going after their gold. Germany publicly proclaims the Greek economy as healthy despite a 25% or so decline in activity of late. Italy moves towards nationalizing its thrice bailed out third largest bank as its crisis grows. Time magazine promotes Trump as its man of the year and encourages those that didn’t vote for him to skip paying taxes. Were it not for mandated increases in health care spending in the last few years’ economic growth would have been virtually zero. The mainstream media continues its McCarthyesq witch hunt of the alternative media accusing it of spreading fake news and being an outlet for Russian propaganda, and it goes on and on in an endless parade of blatantly contradictory statements and proclamations. But never mind all that we have new record market high after new record market high. This has to be the most frustrating and aggravating year of my 20-year career in the investment business.