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Did we say to expect a volatile week this week?  That was an understatement. 

To recap - The yield on the 10 year T bond was at 4% as we started the week.

Yesterday was saw the yield drop below 3.6% for a very brief time, before the bond selling exploded and yields went crazy.  We closed yesterday with the yield at 3.73% - but opened this morning at 3.75% and we've been rising ever since.  The yield, at this moment is at 3.84%!   

In the absence of government intervention in mortgage bonds, they have been following the 10 year bond, and so mortgage rates have been on a roller coaster ride this week.  I hate to even try to quote rates right now because updated rate sheets have been rolling out at least hourly the last 2 days. 

So - what's causing all this craziness? 

1. Fear and greed - always big motivators
2. Profit taking - with swings this big, some investors, most notably entities like hedge funds, mutual funds, and even the Feds, are making some nice profits. 
3. The announcement that we will see the biggest auctions on record next week of NEW T bonds

Hang onto your hats again.  It looks like next week will be another rocky ride.

OH - and mortgage rates are somewhere between 5% - 5.5% for the 30 year fixed rate mortgage.   

There was some more good news/bad news on the economic front this morning.   

• The number of Americans filing for unemployment benefits increased a bit again, last week
• The number of Americans receiving umemployment benefits dropped a LOT (148,000) last week, for the first time since January.   At this point, we don't know how many of those people found jobs, and how many ran out of benefits, but even if 50/50, this is the first sign that employers are hiring.

President Obama rolled out his plan for regulation reform in the financial industries.  It is 85 pages of reform that is meeting with a lot of controversy, and resistance, both in Congress and in the business sector.

Here's the Did you know - The Senate is currently discussing whether or not to INCREASE the tax credit for a home purchase from $8,000 to $15,000. The amount will almost double, and will be available to every home buyer! not just first time home buyers. WOW - They are really trying to get this housing market moving again. This credit will be available for owner occupied homes only.

Stay tuned - you'll know more as soon as I do.