Time to Buy or Refinance is Now!

The rally is heating up after a factory survey showed the manufacturing sector contracted last month sending money to government-backed securities.  This helps hopes of another Fed rate cut.  The ISM manufacturing report came in at 47.7 which is way below the expectatios of 50.5 and the lowest reading for 2007.  Historically, the Fed has eased rates with an ISM number below 50.  This is a good sign that things have spilled over from the credit markets to the real ecomomy.  So it is a good start to the New Year.  I am recommending floating into tomorrow and see what the reaction in the market is to the Fed minutes that will be released later today.  Thursdays ADP report will give clues on Friday Jobs Report.  Friday's Jobs report could be the catalyst that causes rates to improve towards refi-mania levels or causes pricing to give up its recent gains.  Stay tuned as tomorrow will lay out my Jobs Report strategy heading into Friday's important release.