Good Afternoon,
Mortgage Bonds are trading slightly higher so far today, and Stocks are looking to rebound after yesterday's sell off.
Here's an interesting note on the unlikelihood of rates moving much lower - last Friday, Jack Koskinen, interim chief executive of Freddie Mac, said that home loan rates are near the bottom and that any further decreases will be small.
The Chicago Purchasing Managers Index (PMI) came in slightly lower than anticipated, actually registering the worst number in 29 years. Consumer Confidence arrived at 26.0, an improvement over last month's read but a bit lower than expectations of 28.0.
For now, I will continue to recommend floating. Certainly, if anything changes I will let you know. I hope that the rest of your day is great. If there is ever anything that I can do for you, please let me know.
Tuesday, March 31, 2009
Monday, March 30, 2009
YOUR Mortgage Minute -- March 30, 2009
Good Morning,
I hope that your Monday is off to a fabulous start!
Mortgage Bonds are trading higher so far today, as Stocks are under selling pressure.
Driving global stock markets lower is news from the Obama administration that Chrysler and GM may require some form of quick bankruptcy to survive. This news has triggered heavy selling of the US dollar and stocks. This is also a reminder that we are still in a severe recession, keeping us near the lowest mortgage rates in our history. While this hurts trement, it will not last forever.
Currently, the Bond is again trading near historical highs. I recommend floating for now, but be prepared to lock in this historic opportunity, because news later in the week may cause an uptick in rates.
If the events of today require a change of course, I will certainly keep you posted. In the meantime, I truly hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
I hope that your Monday is off to a fabulous start!
Mortgage Bonds are trading higher so far today, as Stocks are under selling pressure.
Driving global stock markets lower is news from the Obama administration that Chrysler and GM may require some form of quick bankruptcy to survive. This news has triggered heavy selling of the US dollar and stocks. This is also a reminder that we are still in a severe recession, keeping us near the lowest mortgage rates in our history. While this hurts trement, it will not last forever.
Currently, the Bond is again trading near historical highs. I recommend floating for now, but be prepared to lock in this historic opportunity, because news later in the week may cause an uptick in rates.
If the events of today require a change of course, I will certainly keep you posted. In the meantime, I truly hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
Saturday, March 28, 2009
YOUR Mortgage Minute -- Mortgage 101
On the days that the market is closed, I will try to provide additional educational content regarding Mortgages and how best to utilize them for better overall financial health.
I am often asked how the mortgage markets work and how do I know what is going to happen next. This is a great question and prehaps many of you who read my notes daily (thank you!) think the same thngs to yourselves.
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see the 10-Year Treasury and Mortgage Bonds move in completely opposite directions. So if you are watching the 10-year Treasury and thinking that mortgage rates should be moving (up or down) and they are not, well now you know why. Also, if you happen to talk with your mortgage loan officer and they mention the 10 year treasury as the tool to watch, well you just might want to seek a 2nd opinion.
Look for more blogging on the ins and outs of mortgage markets soon and what it all means to you and your mortgage . In the meantime, I hope you have a FABULOUS rest of your day and a great rest of your weekend ahead. If there is ever anything that I can do for you, please let me know.
I am often asked how the mortgage markets work and how do I know what is going to happen next. This is a great question and prehaps many of you who read my notes daily (thank you!) think the same thngs to yourselves.
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see the 10-Year Treasury and Mortgage Bonds move in completely opposite directions. So if you are watching the 10-year Treasury and thinking that mortgage rates should be moving (up or down) and they are not, well now you know why. Also, if you happen to talk with your mortgage loan officer and they mention the 10 year treasury as the tool to watch, well you just might want to seek a 2nd opinion.
Look for more blogging on the ins and outs of mortgage markets soon and what it all means to you and your mortgage . In the meantime, I hope you have a FABULOUS rest of your day and a great rest of your weekend ahead. If there is ever anything that I can do for you, please let me know.
Friday, March 27, 2009
YOUR Mortgage Minute -- March 27, 2009
Good Morning,
Mortgage Bonds are trading a bit higher so far this morning, as Stocks move lower. Also helping boost Bonds was a tolerable inflation reading of 0.2% for February and 1.8% year-over-year, after the volatile food and fuel figures are removed.
In other news, Personal Income came in slightly lower than estimates, while Personal Spending was inline with estimates. In addition, consumers are still hunkering down and saving, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade.
Currently, Mortgage Bonds are trading in a wide open range between resistance and support. We can continue to float for now. But, with Bond prices once again near historic highs, we may want to lock in our gains soon. I will keep you posted as things develop. In the meantime, I hope you have a great rest of your day. If there is ever anything that I can do for you, please let me know.
Thursday, March 26, 2009
YOUR Mortgage Minute -- March 26, 2009
Good Morning,
The economic data released this morning had little effect on the Mortgage Bond markets, as both the final Gross Domestic Product for 4th Quarter and Initial Jobless Claims came in near expectations. The number of people collecting state unemployment benefits has reached yet another new record, jumping to a seasonally adjusted 5.56 Million.
Later today, the government will auction off $24 Billion of 7-year Notes. This will be important to watch, as yesterday's auction showed pretty weak results both in overall appetite for the notes as well as lack of interest from foreign buyers, which in turn applied selling pressure in both Treasuries and Mortgage Bonds.
I recommend careful rate floating for now, as Bonds remain above an important floor of support. I will certainly let you know if the events of the day require a change in direction. In the meantime, I hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
The economic data released this morning had little effect on the Mortgage Bond markets, as both the final Gross Domestic Product for 4th Quarter and Initial Jobless Claims came in near expectations. The number of people collecting state unemployment benefits has reached yet another new record, jumping to a seasonally adjusted 5.56 Million.
Later today, the government will auction off $24 Billion of 7-year Notes. This will be important to watch, as yesterday's auction showed pretty weak results both in overall appetite for the notes as well as lack of interest from foreign buyers, which in turn applied selling pressure in both Treasuries and Mortgage Bonds.
I recommend careful rate floating for now, as Bonds remain above an important floor of support. I will certainly let you know if the events of the day require a change in direction. In the meantime, I hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
Wednesday, March 25, 2009
YOUR Mortgage Minute -- March 25, 2009
Good Morning,
Mortgage Bonds opened lower this morning, but are now attempting to stabilize above a layer of support.
In the headlines today, the markets received good news when the Orders of Durable Goods for February came in better than expected and indicated the first increase in 6 months. New Home Sales also beat expectations. In addition, the inventory of unsold homes fell slightly. These are all very encouraging signs.
Currently, Mortgage Bonds are holding above important levels of support. I recommend careful floating for now. I will continue to monitor the situation and keep you informed if there's a change of course needed. In the meantime, I hope you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
Mortgage Bonds opened lower this morning, but are now attempting to stabilize above a layer of support.
In the headlines today, the markets received good news when the Orders of Durable Goods for February came in better than expected and indicated the first increase in 6 months. New Home Sales also beat expectations. In addition, the inventory of unsold homes fell slightly. These are all very encouraging signs.
Currently, Mortgage Bonds are holding above important levels of support. I recommend careful floating for now. I will continue to monitor the situation and keep you informed if there's a change of course needed. In the meantime, I hope you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
Monday, March 23, 2009
YOUR Mortgage Minute -- March 23, 2009
Good Morning.
Here's to the start of a FABULOUS week.
Stocks are trading higher after Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions using money from the $700 Billion TARP fund. The government will mitigate the risk by offering private investors billions of dollars in low-interest loans to finance the purchases.
Also today, the housing market received good news when the Existing Home Sales came in stronger than expected. And, the US Dollar received a boost when China said it will continue to purchase US Treasuries, despite saying last week they were concerned about the value of those Treasuries.
Currently, Mortgage Bonds are attempting to stabilize after losing some ground late last week. For now, I recommend CAREFUL floating. But be prepared to lock if the situation changes. I will certainly keep you posted as the situation warrants. In the meantime, I truly hope that you have a great rest of your day. If there is ever anything that I can do for you, please let me know.
Here's to the start of a FABULOUS week.
Stocks are trading higher after Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions using money from the $700 Billion TARP fund. The government will mitigate the risk by offering private investors billions of dollars in low-interest loans to finance the purchases.
Also today, the housing market received good news when the Existing Home Sales came in stronger than expected. And, the US Dollar received a boost when China said it will continue to purchase US Treasuries, despite saying last week they were concerned about the value of those Treasuries.
Currently, Mortgage Bonds are attempting to stabilize after losing some ground late last week. For now, I recommend CAREFUL floating. But be prepared to lock if the situation changes. I will certainly keep you posted as the situation warrants. In the meantime, I truly hope that you have a great rest of your day. If there is ever anything that I can do for you, please let me know.
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