Thursday, March 1, 2007

The Stock Market Tumble is Great for Me

I don't pretend to understand the complated interplay between the markets that cause mortgage interest rates to come down. I know that there is not a direct connection between the stock market and mortgage rates, I do know that when the stock market declines, mortgage rates follow - after a bit of a lag.

Dan at the Mortgage Reports has a great explanation of the relationship.

Mind you, I don't have money in the stock market other than from way-back-when I worked for a company that had a retirement plan. My 401-k is invested in a simple Index Fund - because anything else is a complete mystery to me. The last time I put my own money in the stock market was during the height of the tech-boom. I timed it perfectly so I bought at the most fevered, and then it all crashed.

So I stick with what I know. And in the next week or so I am eagerly awaiting mortage rates to dip down to 6.0% or maybe even into the high fives. I have clients just under contract waiting for the dip, and I'll be looking for investment condo's actively. This could be a great Spring!