For Those About to Rock…
Guitar Quote of the Day: “I want every girl in the world to pick up a guitar and start screaming.” – Courtney Love
Wuss’up This Week: Last week some weak employment reports pushed rates down slightly. Will rates stay low? That depends on today’s 10-year Treasury Note Auction. The last 10-year auction totaled $24 billion, which was $1 billion less than the last auction. But is a billion really that big a number anymore? When I turned 40 I was comforted with the phrase “40 is the new 30.” I’m now starting to think that “billion is the new million.” I’m rambling, I know, but here’s the bottom line: another billion short in today’s auction will mean that foreign demand is down, which will push rates up. Also today the Fed will release their Beige Book report, which details current economic conditions. Signs of weakness will lead to lower rates. And where are rates, you ask?
Interest Rate Update: ARMs dominate the rate talks the past few weeks as lately we’ve seen them flirt with 3%. Where they will end up no one really knows…but I do know it’s a great time to refinance to an ARM (or redo your current ARM) if you’re not going to own your home for more than 7 years. 30-year fixed rates remain in the mid-4s. As usual, rates will vary based on type of home, equity in the home, credit score, and the success or failure of the Spice Girls reunion tour (I’m hoping for failure since Posh refuses to return my calls).
Guitar Quote of the Day 2: “Sell my guitars? Would you tell Picasso to sell his guitars?” – Dewey Finn (Jack Black), School of Rock (2003)
Timeout for Trivia: Congrats to you all who guessed Morgan Freeman as last week’s answer. Want to be entered into a drawing to win a jar of rubber cement? Simply email me the answer to this week’s “Who Am I?” question. Good luck: “Tomorrow I turn 50 and I have a lot to be thankful for. Thank you to Matthew Broderick for passing on the role that made me famous. Also a big thanks to Eric Stoltz, whose firing changed the future of my movie career. I know how karma works though, so I left another successful show to give a guy who knows something about winning a shot at a TV series.”