Following the stock and bond markets over the past week has probably given many an investor a sore neck. Stocks up, then down, then up. And not just a few points, either but triple digit moves in the Dow. The unemployment rate released last Friday dropped below 6.00% to 5.9% and a healthy dosestock market volatile of jobs were added as well.

Outside of the lowest labor participation rate since 1978, which will reduce the unemployment rate on its own, there were 248,000 new non-farm jobs created in the month of September.

At the end of Friday, mortgage bonds had recovered most of their losses. The Dow improved then went the other way. Yesterday, the Dow finished up strongly gaining 344 points after release of the minutes of the Fed’s most recent FOMC meetings indicating the Fed will be less likely to raise rates. This in light of more hawkish comments coming from various Fed committee members. Then, the Dow fell the very next opening.

One of the key components of this volatility is perhaps the realization, finally, that the Fed will stop printing money with its QEIII program. So far, the Fed has pumped 4.5T into the economy and has been given credit for propping up the stock markets but as the spigot is finally turned off later this month it’s causing many to revert back to a more traditional market, where speculation based upon research and expectation takes a front seat.

In times of such volatility, real estate investors should see financing costs continue to stay low as more and more investors seek the safety of mortgage bonds and U.S. Treasuries as place to park their cash. For so long, the stock and bond markets marched in tandem as rate expectations were evaluated