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										News for June 10, 2009
					Tomorrow will bring important economic reports that may turn the tide in the recent rate increases or seal the new rate environment for the next month(s). Two retail sales reports and an initial jobless report should determine where the bond market moves for the upcoming weeks. Banks and Lenders are under pressure as mortgage applications have dropped off significantly with the higher rates of the past 2 weeks. The administration has also voiced concern about the increased rates and the dangers of stopping the healing that had started in the housing market. Keep an eye on the Treasury and the increase in bond auctions that have been driving bond prices lower. The money needed to fund the administration's stimulus policies is the reason for the heavy increase in these auctions. The oversupply is steadily moving prices lower, yields higher and mortgage interest rates higher. Opinions have seen significant change as to whether a commercial real estate collapse is eminent. Stories printed in financial papers and websites now seem to espouse a shift in thinking that there may not be the problems in the near future many had thought. Commercial, like all real estate is local in nature though and some areas may still be hit hard. The stock market has continued a strong rally that has also been putting pressure on bonds. We still recommend that the foundation of your investments be in solid and stable fixed and indexed products that do not expose your assets to the risk of losing principal. We are always delighted to hear from our existing clients and potential new ones. If you have questions about real estate, mortgages or investing please contact us.