Over the past week we’ve seen mortgage interest rates climb over a full point. From 3.5% on a 30 year fixed rate loan to 4.625%. To find the reason for the quick jump we have to look no further than Washington. We need to remember that interest rates are tied to the Bond market. The better the Bond market does, the lower rates go. In order to boost our economy, the Fed’s have been artificially suppressing interest rates by dumping 10 Billion dollars per month ( yes you read right, BILLION ) into the bond market. That is why you could get a car loan at 2% and a home loan at 3.25%. Down side…. your savings account was paying about 1% if you were lucky. And everyone was riding the gravy train thinking it would last forever. Well last week the Fed’s announced the end of the monthly money dump was coming soon. This caused shock waves through out the investment world and interest rates responded to the new market conditions.
Now for GOOD news !! July 15 is a day that you should mark on your calendar. Apollo Global Management bought the rights to Hostess snacks. And on July 15thwe’ll see Twinkies, Cup Cakes, Donettes, etc., back on the shelves in boxes labeled, “The Sweetest Comeback In The History Of Ever