Last Week in Review  The Bond saw dramatic movement last week as oil drives the market.  30yr fixed rate sits at 6.25% and the 15yr at 5.875% Jumbo Arms in the low to mid 6%  range.  FHA and VA are right at 6.375%. 

"VERY NICE. IT'S A LITTLE GREASY.BUT VERY NICE. CRUMBLE SOME CRACKERS INTO IT SHELL, THAT WILL HELP TO ABSORB THE GREASE." Peter Falk's line from the 1979 classic movie "The In-Laws" is good advice about soup.but doesn't help us much when it comes to absorbing the high price of oil, a greasy topic that continues to permeate financial headlines.

And last week was no exception, with oil prices continuing to march ever higher, despite an announcement early last week by OPEC member Saudi Arabia that they will increase oil production in the near future. They are concerned that the high price of oil will lead to lower demand and a turn toward alternative energy sources. And Friday's news didn't help, with a strike at a Chevron plant in war-torn Nigeria, Africa's largest oil producing nation. Additionally, Israel conducted a military operation for preparedness in case of a potential strike against Iran's nuclear plants - which all served to push oil prices higher still. High oil prices are inflationary - so if the march higher in oil prices continues, both the Stock and Bond markets will suffer.