By: Fred Arnold
Despite the absence of major market moving news in the U.S., stocks have had a wild ride for the first 4 days of the week. The market volatility has been primarily based upon speculation about what the Fed will do regarding interest rates and economic concerns over seas. The market finished Thursday only down 100 points for the week after being down over 300 points at the start of Thursdays trading.
Mortgage rates have been continuing their march higher although the pace of the increase has slowed somewhat. On Thursday rates recovered slightly, however many investors continue to remain on pins and needles regarding the value of their bond portfolio. As rates rise, the value of bond holdings deteriorate. Despite the increase in rates investors seem to be waiting for what the Fed will do next.