Two weeks ago, the tone on Wall Street was overwhelmingly positive and the glass was half-full. Last week, however, that all changed.
The week began with former Fed Chairman Alan Greenspan’s remarking that a 2007 recession may be looming, and it ended with Dow posting its worst one week loss in more than four years.
The glass is now half-empty.
Two weeks ago, market bears could barely be heard above the bulls. The roles are now firmly reversed and that is good news for mortgage rates.
Remember, rates generally fall when the economy sputters.
The economic calendar is sparse this week until Friday’s jobs report. Until then, expect extreme volatility as market psychology dictates the market (and mortgage rate) movement.