Average rate on 30-year mortgage hits 5 percent
Average rate on 30-year fixed mortgage surpasses 5 percent this week as Treasury yields jump The average rate on the 30-year mortgage topped 5 percent this week for the first time since April. Higher rates could further hamper the struggling housing market ahead of the spring's prime home-buying season Freddie Mac said Thursday that the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan, a popular refinance option, increased to 4.29 percent from 4.08 percent. It reached 3.57 percent in…
Bonds Fed-Spooked
Investors Boot Treasurys, Anticipating End to Stimulus Treasury prices lost ground Friday for a fifth straight session as a key jobs report added to worries about inflation, boosting speculation that the Federal Reserve could start withdrawing its monetary stimulus for the economy earlier than many expected. An unexpected drop in the unemployment rate in the January nonfarm payrolls report followed robust manufacturing, service and jobs data earlier in the week, reinforcing a view among some market participants that the economic recovery is gaining strength. Bond yields, which move inversely to their prices, surged on the week—to the highest levels since…
A Chance to Veto a CEO’s Bonus
Investors are getting more "say on pay." Before you start warming up your vocal cords, you should know a few things about using your new rights intelligently. Under rules adopted this week by the Securities and Exchange Commission, companies whose stock-market value exceeds $75 million must give shareholders the opportunity, at least once every three years, to voice their approval or disapproval of how top management is being paid. Shareholders have always been able to call for such a vote, but now it will be mandatory. The vote remains "advisory"; companies will be free to ignore the results. So you…
Gold Drops to Three-Month Low as Investor Demand Slumps; Silver Declines
Gold futures fell to the lowest in almost three months as demand waned for precious metals as alternative investments. Global investors are becoming more confident about the economic outlook, according to a quarterly poll of 1,000 Bloomberg subscribers. Almost twice as many of those surveyed said they will cut gold holdings in the next six months, instead of increasing them. More than half said the gold market is a bubble. “Our urge to be long gold has fallen quite sharply, and the trend has turned rather badly against the longs,” said Dennis Gartman, an economist and the editor of…
Consumer Confidence Index hits 8-month high
WASHINGTON (AP) -- Consumer confidence hit an eight-month high in January. The increase suggests the rising spirits that fueled a holiday shopping boom are carrying over into the new year as people feel better about the job market. The Conference Board said Tuesday its Consumer Confidence Index climbed to 60.6 this month from 53.3 in December. While confidence is still far from the 90 that signals a healthy consumer mindset, the January improvement was better than expected. Some economists said the big tax relief package Congress passed in late December may have helped. "So much for a ho-hum January," said…