YOUR Mortgage Minute -- October 30, 2009

Good Morning,

I hope that your Friday is off to a terrific start. In the Markets today, Mortgage Bonds are trading higher this morning, now that the weight of the Treasury Department's record $123 Billion in auctions are behind us.

In the news, Personal Income was reported unchanged in September, while Consumer Spending fell 0.5%. Also this morning, some encouraging news came from the Chicago PMI and the Michigan Consumer Sentiment, which both came in better than expectations with mildly positive numbers.

Currently, Bond prices are trading just below the 25-Day Moving Average. I recommend floating for now. I will continue to monitor the market throughout the day and keep you informed of any major developments. I hope you enjoy your day and have a great weekend ahead too -- Happy Halloween! If there is ever anything I can do for you, please let me know.

YOUR Mortgage Minute -- October 26, 2009

Good Afternoon,

I hope your Monday is going well for you. 35 days remain in the First Time Home Buyer Tax Credit -- its getting down to crunch time!

In the markets, Mortgage Bonds were lower this morning, following through on Friday's weakness and responding to a move higher in Stocks. While Stocks are higher due to good earnings reports, it is important to understand that positive earnings numbers gained by cutting jobs are not really positive for the economy, nor are these gains sustainable.

There are no economic reports set for release today, but later this week we’ll have reports on housing, consumer demand, economic growth, inflation and the labor market. In addition, there will be more Treasury auctions later this week as well.

The Fed’s Treasury buyback program comes to an end on Thursday. Without the Fed buying support helping to provide demand to sop up some of the massive supply…rates will continue to edge higher back to more "historically normal" levels.

Bonds have fallen below two support levels. I recommend carefully floating, but should Bonds drop lower I will let you know if we need to lock. In the meatime, 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.

YOUR Mortgage Minute -- October 22, 2009

Good Morning,

I hope that your Thursday is treating you well. Here in Central Iowa its a rainy, cool day, fairly typical for October. In the Markets, Mortgage Bonds are lower this morning, but are fighting to stay above a dual layer of support at the 50- and 200-day Moving Averages.

In the news, Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of people’s unemployment benefits expiring, without them having been able to find jobs.

For now, we can certainly continue to float as the Bond hovers near support. But things may change quickly due to the Treasury Department’s announcement of next week’s auctions, which could be in record amounts! The large treasury auctions are a reality check that as consumers we have to pay back all the stimulus and spending dollars poured out over the past year and a half. If anything changes, I will certainly let you know. In the meantime, if there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- October 20, 2009

Good Morning,

Mortgage Bonds are getting a boost higher this morning, as prices respond to weaker than expected housing numbers and tame wholesale inflation data.

Housing Starts and Building Permits both came in under expectations. In addition, the Producer Price Index--which measures wholesale inflation--unexpectedly fell due to a drop in energy prices. Next month's number could climb higher again, as oil and natural gas have both been on a tear lately.

For now, I recommend floating, since the Bond is resting above the 200-Day Moving Average. But stay tuned for any major changes that may occur during the day. I will keep you posted. In the meantime, I hope that you enjoy your day. If there is ever anything that I can do for you, please let me know.

Your Mortgage Minute -- Octiber 19, 2009

Good Morning,

Last week went by with such a flurry -- we are now down to a precious 42 days in the rush to take advantage of the $8,000 First Time Home Buyer Tax Credit. There is still time to accomplish this goal, but the days are starting to get shorter. if you or some you care about is in the market for this opportunity, please make sure to touch base with a local real estate professional in your area who can help you get through this.

On to the news of the day ... after a wild run last week, Mortgage Bonds are starting the week on the quiet side. With no economic reports due for release today, Bonds will likely react to action in Stocks as well as a speech by Fed Chairman Bernanke later this morning.

Stocks are attempting to maintain a rally, fueled by optimism that 3rd Quarter Corporate earnings will continue to exceed expectations. So far, 61 companies from within the S&P 500 have reported earnings, with 79% beating expectations. It is worth noting that 61 companies is a small sampling of the 500 due to report - additionally the expectations for the earnings have been pretty low. So essentially, it is a matter of perspective, but in this market baby steps of improvement in corporate earnings signal higher trends in Mortgage Rates soon.

After last week’s decline, Bonds are now trying to stabilize and hold their ground above a key support level. I recommend Floating, but I will alert you should sentiment change. 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.

YOUR Mortgage Minute -- October 9, 2009

Good Morning,

I hope that your Friday is going great so far. Just a friendly reminder -- Only 52 days remain for the first time home buyer tax credit, the clock continues to tick on this fabulous opportunity. If you or someone you know is in the market for a home purchase, please feel free to pass my contact information along.

In the Markets, yesterday's 30-year Treasury Bond auction was poorly received, which applied some selling pressure on the Bond market that has carried forward into today's trading action.

This morning, Mortgage Bond prices hit a tough overhead ceiling of resistance, as they attempted to move higher. They have since been turned back and remain lower so far today. Therefore, I recommend locking, especially if you are closing in the next week or so, as all of the gains over the past week have been virtually erased.

The Bond market is closed Monday in observance of the Columbus Day holiday. However, both the Stock market and Bond market have regular sessions today. I will continue to monitor the markets and keep you posted of any major developments as the day goes on. 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.

YOUR Mortgage Minute -- October 8, 2009

Since the beginning of the month, Mortgage Bonds have been battling an overhead ceiling of resistance. Prices have been unable to make a convincing move above this ceiling, thanks in part to recent Treasury auctions and a resilient Stock market.

Earnings season kicked off yesterday, and as always, aluminum giant Alcoa was the very first company to report. Alcoa beat expectations and returned to profitability for the first time in a year, which is giving a lift to Stocks so far this morning.

Initial Jobless Claims Report were released today coming in lower than expectations and were the fewest claims since the 1st week in January.

The Treasury auction results will hit at 1:00pm ET, as the government auctions off $12B in 30-year Bonds and it could have an impact on the Bond market.

For this morning, I will recommend to Carefully Float, but I will be on guard for a reversal as Bond prices battle tough overhead resistance. If anything changes, I will let you know.

YOUR Mortgage Minute -- Wednesday 10.07.09

Good Morning,

I hope that your Wednesday is off to a terrific start already. In the Markets today, Mortgage Bonds are trading higher, but are lower than their best levels from earlier this morning.

In the news today, more Bond supply is on the way, as the Treasury will auction off $20 Billion in 10-year Notes at 1 pm Eastern Time. Yesterday's 3-year Note auction wasn't received very well, so Traders will be watching today's auction very closely.

For now, I recommend floating. But be prepared to lock in the recent gains if the situation changes. Bond prices have already been pushed back from resistance and may be further affected by the auction later today. I will keep you posted. 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.

YOUR Mortgage Minute -- October 5, 2009

Good Afternoon,

Mortgage Bonds are starting the week modestly higher. Prices continue to battle resistance at highs last seen in late May.

This week brings another round of Treasury auctions, and as we have seen in the past, this could shake up the markets. Also, former Fed Chairman Alan Greenspan said he sees unemployment rising beyond 10%, yet he advised against a second massive stimulus package, as he fears the long-term negative consequences.

I recommend Floating for now, but be ready to Lock should sentiment change. I hope you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- October 1, 2009

Good Afternoon,

I hope your Thrusday is going great. It is a rainy day here in Central Iowa. Only 60 days remain for the first time home buyer tax credit, the clock continues to tick on this opportunity.

In the Markets today, Mortgage Bonds are trading higher in response to worse than expected employment data as well as weakness in Stocks.

In the news, Initial Jobless Claims increased more than expected, indicating ongoing weakness in the labor market. The ISM Manufacturing Index also came in slightly worse than expected. There was some good news, however, as Pending Home Sales were reported far above expectations and Personal Spending for August rose at its fastest monthly pace in almost 8 years, thanks in large part to the "Cash for Clunkers" program.

Currently, Mortgage Rates are still near all-time lows and present an incredible opportunity for a borrower. With the Federal Reserve's decision to cut back on buying mortgage back securities in the first quarter of 2010, rates will gradually return to the historical average 6-6.5% for a 30 year loan.

For now, I recommend floating into tomorrow's Jobs Report. But be prepared to lock if today's announcement of next week's Treasury auctions causes the markets to stir. If it does, I will certainly let you know. In the meantime, if there is ever anything that I can do for you, please let me know.