People have been asking where the market is trending. We are seeing a lot of economic bad news which tends to be Bond friendly. This morning GDP reported well below expectations at 2.2% and inflation rose at 2.4%. Slower growth and higher inflation is NOT GOOD for this fragile economy. The chart below shows the recent 'up escalator' trend line but the blue horizontal line is the ceiling of resistance. If Bonds break above this line rates could come down a bit but if prices pull back there is a lot of room to fall. Share this with anyone you know who is buying or refinancing a home.
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