For some perspective on all-important long-term interest rates, today’s chart illustrates the 42-year trend of 30-year mortgage rates (thick blue line). As today’s chart illustrates, mortgage rates have been rising significantly as of late. This is largely due to improving US economy as well as the potential of the Fed to begin tapering its quantitative easing as early as September. In fact, the 30-year mortgage rate has increased over 80 basis points during the past three months — the largest three-month increase since 2004. While the 30-year mortgage rate still rests well within the confines of its 27-year downtrend channel, it’s worth noting that the last two times mortgage rates reached the top end of its downtrend channel (green line), the stock market followed with a major decline (i.e. dot-com bust and financial crisis).
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Quote of the Day
“What experience and history teach is this–that people and governments never have learned anything from history, or acted on principles deduced from it.” – Georg Hegel
Events of the Day
July 14, 2013 – Bastille Day (France) – British Open golf tournament begins (ends July 21st)
July 16, 2013 – Baseball All-Star Game
Stocks of the Day
— Find out which stocks investors are focused on with the most active stocks today.
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