Meteoric Stock Increases
The Dow Jones Industrial Average and S&P 500 saw historic gains in the month of October. The Dow advanced 13.5%, it's biggest gain since January 1987. The S&P 500 saw an increase of 12%, it's largest gain since October 1974. Optimism surrounding Europe, positive economic data and better than expected earnings reports all helped these indexes to huge monthly gains. How does this affect home loan rates? Home loan rates pushed up in October in large part due to the meteoric rise in stocks. As investors looked to take advantage of favorable stock conditions, money flowed out of bonds. With all the money coming out of bonds, home loan rates took a hit.
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Cindy Bradley Mortgage Team, Cheyenne, Wyoming