With just a few weeks left before the home buying tax credit expires, the rise in mortgage rates above 5% over the past few weeks has put a crimp in applications. Purchases for the week fell 10.5% to a 6 week low and refi’s fell 9% to a 14 week low. Stock bulls are back above 50 as II reports: Bulls 51.1 v 48.9 Bears 18.9, unch with last week. Greek bonds are selling off again with the 10 yr yield back above 7%. Fitch today said they think Greece taps the EU/IMF bailout money within the next two weeks as they think Greece would rather tap it before the possibility of a failed auction. Greek stocks are down 2% and have given back over the past two days the bailout rally on Monday. I don’t know what this means for policy imminently but the Chinese State Council said inflation expectations are rising.
