On this day in 1803 President Thomas Jefferson requested funding from Congress for the Lewis and Clark expedition. The funding package was for $2,500 in 1803 dollars which equates to $52,252 in today’s dollars. Any guesses as to whether or not our current government could accomplish the same feat as cheaply?
Government expeditions aren’t the only thing that have become more expensive. Just take a look at the stock market. Earlier today the Dow Jones Industrial Average (DJIA) eclipsed 26,000 for the first time.
Only seven trading sessions have passed from when the DJIA eclipsed 25,0000. Should it close above 26,000 later today it would be the first time in the market’s 120-year history that it has increased by 1,000 points this quickly.
Typically, when stocks rally it hurts mortgage rates because it encourages money to flow out of the bond market and into equities. As we know mortgage rates have increased by ~.25% over the past few weeks and the stock market has had an influence.
Momentum in the stock market suggests that home loan rates will have a difficult time moving lower in the near-term. I think the best we can hope for this week is for them to remain constant and I won’t be surprised to see them edge higher.
In my personal opinion US stocks are currently overvalued as compared to long-run valuation comparisons (see HERE) but that doesn’t mean we’ll see a near-term correction.
For now I recommend locking.
Current Outlook: locking