The Great Depression Ahead ~ Harry Dent on The Everything Financial Radio Show

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Mortgage rates near 4% barrier

Mortgage rates moved to within a hair of the 4% barrier this week, according to mortgage giant Freddie Mac.

The average rate for 30-year, fixed rate loans rose 0.07 percentage point to 3.98%, and is up 0.63 percentage point since the week of May 2. Rates have not been this high since the week of April 12, 2012.

"Fixed mortgage rates crept up further this week following a solid employment report for May," said Frank Nothaft, Freddie Mac's chief economist.

The recent improvement in the employment picture should result in more home buying, which would pressure rates even higher. Rates have also been going up because the Federal Reserve has signaled that it might cut back on buying mortgage-backed securities. If that happens, lenders would likely charge higher rates to make the securities more attractive to other buyers.

As rate increases push up the cost of home ownership, the impact on the housing market will be slight, according to Gumbinger, vice president of HSH.com, a mortgage information company.

But, he added, "Although the size of the increase was [small], it is still unwelcome as the housing market tries to gain momentum."

The increase will boost monthly mortgage payments for homebuyers by about $33 for every $100,000 borrowed. Gumbinger said that will discourage some existing homeowners from refinancing their loans if they already have a competitive rate but "[It] shouldn't be a major setback for a home purchase transaction."

But the soaring rates create a double whammy for would-be home buyers, with home prices also on a rapid rise -- up more than 10% in the 12 months ended March 31, according to the S&P/Case-Shiller national home price index.

If both trends continue, it could put a damper on a housing market still in a struggle to put the bust behind it.

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Australian Dollar Plunges as Home Loans Dive; Australia Insolvencies Hit Record; Worst is Yet to Come

Curve Watchers Anonymous has its eye on the Australian dollar. As expected, it has taken a big dive in conjunction with a housing bust and a slowdown in China that impacts the demand for commodities.




The only thing surprising to me about this plunge is how long it took, but here we are. (more)

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J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT)

J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides transportation and delivery services in the continental United States, Canada, and Mexico. The company operates in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Full-Load Dry-Van (JBT). The JBI segment offers intermodal freight solutions, including origin and destination pickup, and delivery services. The DCS segment designs, develops, and executes supply-chain solutions, which support various transportation networks. The ICS segment offers non-asset and asset-light transportation logistics solutions; and flatbed, refrigerated, expedited, and less-than-truckload solutions, as well as various dry-van and intermodal solutions. The JBT segment offers full-load and dry-van freight services by utilizing tractors operating over roads and highways.
To review potential trading opportunities with J.B’s stock, please take a look at the 1-year chart of JBHT (J.B. Hunt Transport Services, Inc.) below with my added notations:
After rallying nicely from its September low, JBHT has formed what may be a double top price pattern (red). Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T). As with any price pattern, a confirmation of the pattern is needed. JBHT would confirm its pattern by breaking the $70 support (navy) that has been created by the double top pattern.
The Tale of the Tape: JBHT should be moving lower if it confirms its double top pattern. A short trade could be made on a break of support with a stop placed above the level. However, a trader could also go long at $70 as well if they believe JBHT is simply consolidating.
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Land Of The Rising Bail In: Deposit Confiscation Coming To Japan Next

We now know that ‘muddle through’ is over, and just as we noted here “there may only be painful ways out of this crisis” as we evidenced by Europe’s attack on Cypriot depositors. With the pillars of Abenomics starting to crumble, it seems plans are afoot to prepare for the bank failures that will come from a BoJ-inspired out-of-control bond market.

As Nikkei reports, Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in.”

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McAlvany Weekly Commentary

Chinese Prepare for Public Flood into Gold

Posted on 12 June 2013.

About this week’s show: 
-Volker & Greenspan join ranks of the concerned
-Speculative gold shorts signal a bottom?
-Mountain biking and investment principles

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TGH: This Dividend Stock Leads a $37-Trillion Industry

When most investors think of investing internationally, I’m guessing that Europe, China, South America or one of the emerging markets in Eastern Europe or Southeast Asia spring to mind.

I doubt many think of Bermuda as an investment destination.

That’s too bad, because Bermuda has more to offer than sugary-white sand beaches and alluring turquoise water.

Bermuda offers investment opportunity, particularly for income investors.

I say that because the High Yield Wealth portfolio features two exceptional Bermuda-domiciled income-generating recommendations. (more)

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