YOUR Mortgage Minute -- The Week That Was -- 11/23-11/27, 2009

Good Morning,

I hope that you had a terrific Thanksgiving Holiday. Here's a look back at what happened in the markets last week and a look ahead to this week's newsmakers that could move the markets.

U.S. Treasuries had another good week, in spite of some positive economic news. But buying turned fierce early Friday when Dubai World, that country's financial arm that is responsible for funding the massive construction efforts in that country, said it may have to postpone meeting its $60 billion worth of financial obligations. Asian markets tumbled, and money headed to the safe haven of Treasuries, sending the 10-year note yield, which moves inversely to price, tumbling to its lowest level since June. Occurrences such as this, however, are generally a temporary reaction to a monetary crisis.

The week began on an up note, with existing home sales in October rising 10.1% to an annual rate of 6.10 million units -- the most since February 2007. This put pressure on Treasuries, but they rebounded when St. Louis Fed president James Bullard said the Fed should continue its stimulus programs beyond current plans.

Tuesday's report on preliminary 3rd quarter GDP also boosted Treasuries, as it was revised downward to 2.8% growth from 3.5%, due to weakness in consumer spending. Traders weren't bothered by a rise in consumer confidence in November which climbed to 49.5 from 48.7.

Wednesday was the big day for reports, starting with first-time jobless claims for the week ended Nov. 21. They fell to 466,000 -- the first time below 500,000 in more than a year. Continued claims also came in at a lower-than-expected 5.42 million. In addition, the final consumer sentiment survey for November from the University of Michigan rose to 67.4 from 66.
New home sales rose 6.2% in October, boosted by a 23.2% increase in the south. The annual rate jumped to 430,000 units, supply fell to 6.7 months and the median price rose to $212,200 -- $1,000 below last year. Another report showed personal spending up 0.6% in October, while disposable income rose 0.2%. Separately, October durables goods orders for October came in below expectations -- down 0.6% and down 1.3% when transportation was excluded.

Although the durable goods report was the only bond-friendly report of the five, a record auction of 7-year notes rallied Treasuries in the afternoon, sending the 10-year yield plunging. Strong auctions on Monday and Tuesday also resulted in heavy demand for bonds on those days.

Despite low mortgage rates, applications for refinancing fell for the week ended Nov. 20, according to the Mortgage Bankers Association. Refis were off 9.5%, while purchase applications rose 9.6%.

This week could be a good one for bonds, if economists' expectations hold up -- until Friday, that is. The November employment report could undo previous gains. Economists are expecting job losses to fall to 120,000 from 190,000 in October, the fewest since October 2008. This would typically prompt selling in Treasuries, as traders will likely worry that economic recovery and rate hikes could come sooner than expected.

This week begins with Today's Chicago PMI index on November manufacturing conditions, which are expected to fall to 53 from 54.2. This decline could be reinforced Tomorrow by the ISM index of national manufacturing conditions. It's predicted to fall to 54.8 from 55.7. These numbers would support bonds, as recovery in manufacturing is key to an economic turnaround. Separately, construction spending in October is expected to tumble -0.4% from the previous 0.8% increase.

The Fed's beige book, due Wednesday, has market-moving potential. If it shows signs of economic recovery in most of the nation's 12 federal districts, that could spur selling in bonds. Indications of economic weakness, however, would have the opposite effect.

First-time unemployment claims for the week ended Nov. 28 are expected to rise to 483,000 from 466,000, while continuing claims should increase to 5.54 million from 5.42 million. This could prop up buying in Treasuries.

The other reports due generally have less impact. The ISM index on the service sector should edge up to 51.4 from 50.6. And revised productivity in the 3rd quarter is expected to decline to 8.5% from the previous 9.5% reading.

In addition to Friday's employment report, factory orders for October will be released. They are expected to show a 0.2% gain. While still positive, this is far lower than the previous 0.9% increase.

I hope that you have a great week ahead. If there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- Special Letter to Clients

Good Morning,

I hope that you had a fabulous Thanksgiving weekend with Family and Friends. I wanted to take just a quick moment to update you on mortgage rates. They dropped again last week, back to near their lowest levels that we saw at the beginning of the year. This rate opportunity is so tremendous that I wanted to make sure you knew where rates were on the most popular type of loans in case you or one of your loved ones is in need of assistance or has been holding out on moving forward on a new home purchase. Don't forget, President Obama's plan allows for these same rates as well and potentially up to 125% financing of the balance (no cash back) based on appraised value (once the loan amount exceeds 95% there are rate adjusters added). So if an appraised value might be a concern, there could potentially be options through this program as well.

Here are some rate examples on a new home purchase, as well as a no cash back refinance, for the most popular loan programs, as of the close of business on Friday, 11/27/09:

30 Year Fixed: As Low as 4.5%
15 Year Fixed: As Low as 4.25%
10 Year Fixed: As low as 4.25%
5 Year ARM: As Low as 3.75%
7 Year ARM: As Low as 4.0%

Again, these rates will stay this low for too long, so if you or someone you know could benefit from this information, I would be happy to go through a free, no obligation review of the options and solutions I would have available to help them meet their goals.

In the meantime, I hope that you have a great week ahead!

YOUR Mortgage Minute -- Why are Rates Still So Low?

Good Morning,

I hope that you had a fabulous Thanksgiving. One of the questions that came up during conversations with friends and family in my neck of the woods is the disbelief that mortgage rates are still so low! I thought I would take a moment to give you a little more insight into that:

With Wall Street unsure about the economy's path, investors look to our nation's central bankers for guidance.

The Federal Reserve has made several points clear:

-- The economy shows tell-tale signs of improvement

-- Unemployment threatens the recovery

-- Inflation pressures are low, for now

Overall, the Fed Minutes from their previous meeting paint the economy as in a state of measured repair, and under tight federal surveillance. Investors like this message and, as a result, stock and bonds markets are improving.

If you haven't checked mortgage rates lately, make a point to do that. In the wake of the Federal Reserve Minutes, conforming mortgage rates are now hovering near their all-time lows set exactly 1 year ago. I hope that you have a great rest of your day. If you have any questions, please let me know. In the meantime, if there is ever anything that I can do for you, please feel free to reach out.

YOUR Mortgage Minute -- November 25, 2009

Good Afternoon,

Mortgage Bonds are slightly higher and are again testing resistance after a Thanksgiving-like serving of economic data hit the wires this morning.

In the news, the Fed's preferred gauge of inflation--the Core Personal Consumption Expenditure--rose more than expected. Also, New Home Sales, Personal Spending, and Personal Income all came in above expectations. Still, Durable Goods Orders for October were reported well below expectations, which illustrates that consumers are still hesitant to make large purchases.

Overall, Bond prices have been on a nice roll recently. But with prices at a ceiling, the risks of floating appear greater than the rewards of locking. Therefore, I recommend locking at this time so that recent gains are not lost. If the situation 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 -- November 24, 2009

Good Morning,

Mortgage Bonds are slightly higher, but off their best levels of the morning.

In the news, the Preliminary Gross Domestic Product reading for the 3rd Quarter was reported in line with expectations, while Consumer Confidence was reported slightly better than expected. Also, the Case-Shiller Index for September reported a slight rise in home prices in the 20 largest US cities, marking the 5th consecutive month of price increases.

Based on where Bond prices are right now in relation to resistance and historic highs, I recommend locking in recent gains. Rates will be moving up, so missing out on the gains while trying to find more gain, may prove costly. If the situation changes, I will certainly let you know. 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.

YOUR Mortgage Minute -- The Week That Was 11/16-11/20, 2009

Good Afternoon,

I hope that this note finds you well. Here is a recap of what has happened in the market over the past week. U.S. Treasuries did well last week, thanks to a big rally the previous Friday, some weaker-than-expected economic reports and a little safe-haven buying. The yield on the benchmark 10-year note held below 3.35% most of the week -- at least 10 basis points lower than the week before -- but ticked up slightly on Friday.

Retail sales for October kicked off a big week of reports, with sales jumping 1.4% thanks to strong demand for cars. Excluding autos, sales rose by only 0.2%. And an unexpectedly huge drop in the NY Empire State manufacturing index for November gave bonds a boost. It plunged to 23.51 from 34.57.

Fed chairman Ben Bernanke gave further support to bonds when he stated that "significant economic challenges remain," but he added that he saw moderate growth with subdued inflation
Tuesday's reports were also bond friendly, with the producer price index finding no signs of wholesale inflation. In fact, the core rate, which eliminates food and energy prices, fell 0.6%. In addition, industrial production in October slowed, rising only 0.1%. Capacity utilization edged up to 70.7% from 70.5% but missed expectations.

Wednesday's disappointing report on housing starts and building permits gave traders another reason to buy. Starts fell 10.6% to an annual rate of 529,000 units from 592,000, making October starts the worst since April. Building permits fell 4% to an annual rate of 575,000. The October consumer price index, or CPI, which checks for wholesale inflation, put some pressure on Treasuries. The CPI rose 0.3% when 0.2% was expected, and the core rate also exceeded estimates, rising 0.2%. But losses were offset by weak housing starts Thursday began with first-time jobless claims for the week ended Nov. 14 coming in flat at 505,000, while the four-week average hit its lowest level in almost a year. Continuing claims edged down to 5.611 million from 5.650 million.

The Philly Fed index on Mid-Atlantic manufacturing conditions for November jumped to 16.7, the fourth straight gain and its highest reading since June 2007. But the index of leading economic indicators, which looks at future economic conditions, rose only 0.3% when economists expected a 1% increase. Nevertheless, it's risen for seven consecutive months.

In spite of low mortgage rates, purchase applications fell for the sixth straight week, according to the Mortgage Bankers Association. Purchase apps were down 7.9% while refis dipped 1.4%.
This week will be short and wild with most of the eight-plus reports coming out Tuesday and Wednesday.

Monday's existing home sales for October is expected to show sales rising to an annual rate of 5.65 million units versus September's 5.57 million. This could spawn selling in Treasuries, but if Tuesday's preliminary revision on 3rd quarter GDP is true, they'll recapture losses. Revised 3.0% growth is expected -- significantly lower than the advance 3.5% increase. If the loss is greater, Treasuries will rally.

Tuesday also brings the November consumer confidence index, which can move markets. But a 47.5 reading versus 47.7 in October is expected. This would be a non-event, but if it comes in lower, buying in Treasuries probably will increase. A couple of home price indices are likely to show continuing price erosion.

On Wednesday initial claims could fall below 500,000 -- or not. Whenever they do, bonds won't take kindly to that. Separately, personal income and spending are both expected to rise for October. Income should be up 0.2% from 0.0% while spending is expected to increase 0.5% from 0.5%. But the core PCE, which is a key inflation gauge, should only rise 0.1% -- same as last month.

October durable goods orders should increase 0.5%; that's less than the previous month, but excluding transportation, they could rise 1.0% -- a tad more than the 0.9% in September. And October new home sales are predicted to increase to an annual rate of 414,000 from 402,000. The University of Michigan's final consumer sentiment survey for November can influence trading, but if it comes in on target, there will be little reaction. It's expected to rise to 66.5 from 66.0.

Reports that meet expectations generally don't rile the markets. It's when there's a big miss -- either up or down -- that gets buyers and sellers busy. I hope you have a fabulous week on this Thanksgiving Holiday Week. If there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- November 19, 2009

Good Afternoon,

Mortgage Bonds are trading slightly higher and, for the moment, remain relatively close to the best prices of 2009.

This morning, Initial Jobless Claims met expectations, and Continuing Jobless Claims fell by 39,000. Once again, that drop is likely due to benefits expiring, rather than people finding jobs. Later today, the Treasury Department will announce next week's auctions, which could add volatility to the market, depending on how the announcement is received.

Currently, Bonds are near their highs for the year. Therefore I recommend locking, since there's presently a higher risk of Bond prices moving to the downside than there are potential gains available to be made on the upside.I hope that you have a great day. If there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- November 17, 2009

Good Morning,

I hope that your day is off to a terrific start already.

In the Markets today, Mortgage Bonds are starting the day a bit lower, continuing their pullback from yesterday's intraday high.

In the news, October's Producer Price Index--which measures wholesale inflation--came in lower than expected, indicating there is no fear of inflation currently. In other economic news, Capacity Utilization and Industrial Production were reported in line with expectations.

For now, I recommend floating. But be prepared to lock if the downward momentum picks up steam. I will monitor the situation and keep you posted. In the meantime, I hope that you enjoy the rest of your day and if there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- The Week that Was 11/09 -11/13

Good Morning,

Here's an update on what happened last week. Last week was a non-event for the most part in the Mortgage Market. U.S. Treasuries, which weren't traded on Wednesday in observance of Veterans' Day, held their own in spite of major gains on Wall Street and a better-than-expected weekly employment report.

Prices, which move in the opposite direction of yields, ticked up Monday in response to a strong auction of 3-year notes and a feeling that the economy still has multiple hurdles to jump prior to recovery. That should keep money coming into bonds. Prices nudged up again on Tuesday in the wake of a successful 10-year-note auction.

Thursday's first-time unemployment claims for the week ended Nov. 7 was the first report of the week. It showed claims dropping by 12,000 to 502,000 -- the fewest since Jan. 3. The four-week average, which smooths volatility, fell to 510,750 and continued claims -- those collecting benefits for more than one week -- dropped to 5.63 million.

Action in the bond pits was minimal, but prices fell after a weak auction of 30-year bonds. Long-term debt is most susceptible to erosion caused by inflation. But the yield on the 10-year held in the mid-3.4% range.

Friday's early reports had no impact, as there is little reaction to import/export price indexes, which were up 0.4% (excluding oil) and 0.3% (excluding agriculture), respectively. The U.S. trade balance in September grew to a wider-than-expected $36.5 billion trade gap -- up from $30.8 billion.

The final report of the week, the University of Michigan preliminary consumer sentiment report, showed consumers are wary about unemployment and economic recovery. The index fell to 66 from 70.6. But Treasuries remained flat in spite of the news.

A drop in mortgage rates during the week ended Nov. 6 brought refinancers out in droves. According to the Mortgage Bankers Association, refis rose 11.3%, but purchase applications declined 13.7%.

As suspected, this week is loaded with reports, and there's at least one market mover each day through Thursday. No reports are scheduled for Friday.

Retail sales for October are up first, and they're expected to rise 0.9% versus a 1.5% decline in September. Ex-autos, sales should grow by 0.4% versus the previous 0.5% increase. The prospect of spending consumers would likely ignite selling in Treasuries.

On the other hand, the NY Empire State index of November manufacturing conditions could stall selling. The index is expected to fall to 29 from October's 34.51 reading. And business inventories for September, which wields little influence, should fall -0.6%.

The producer price index, which looks at wholesale inflation, should increase 0.5% in October -- some of it due to oil prices. In September it fell 0.6%. But the core rate, which eliminates volatile food and energy prices, could rise by an acceptable 0.1% versus the previous 0.1% decline.

We'll also get a report on industrial production, which after several months in negative territory is showing signs of life. A 0.3% increase, however, is expected for October, which would be substantially lower than the 0.7% rise in September. Capacity utilization could creep up to 70.8% from 70.5%.

The consumer price index, or CPI, which is closely watched for signs of inflation, is due Wednesday. Predictions show inflation to be well under control, which would cheer traders. The CPI should rise 0.2%, the same as September, while the core rate is expected to edge up 0.1% -- less than the previous 0.2% increase.

Housing starts and building permits for October are expected to increase, which could put pressure on Treasuries if they beat projections by a lot. Starts should rise to an annual rate of 599,000 units from 590,000, while building permits could increase to an annual rate of 580,000 from 573,000.

Thursday begins with initial claims for the week ended Nov. 14. If there's a big increase, bonds will rally. If there's a big decline, bonds will sell. At least, that's how it's been lately. And leading economic indicators for October, which look at the economy six to months ahead, should show a 0.4% increase, which bodes well for the economy. However, the Philly Fed survey on November manufacturing conditions is expected to fall to 10.8 from 11.5, which could send money into bonds.

That's it for the recap and look ahead. I hope you have a tremendous rest of your day ahead. If there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- November 13, 2009

Good Morning,

Happy Friday the 13th of November. I hope that your day is off to a terrific start so far.

In the Markets, Mortgage Bonds are trading near unchanged levels this morning, despite the Consumer Sentiment Index coming in much lower than expected.

In other news, the Fed stepped in yesterday with more buying of Mortgage Backed Securities, which helped Bond prices recover from news of a weak Treasury Auction. However, now is a good time to remember that the Fed is winding down that type of buying support, which will likely result in Bond prices moving lower and home loan rates rising over the coming months.

Currently, Bonds facing a tough level of resistance that they haven't been able to move above since early October. Therefore, I suggest locking in the current gains, especially if closing is coming within the next week or so. If you have any questions, please let me know. In the meantime, I hope that you have a great rest of your day and a terrific weekend ahead. If there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- November Client Letter

Good Morning,

Since the Mortgage Bond Market is closed today in observance of the Veteran's Day Federal Holiday, I wanted to take a "minute" to share my client letter with you, as perhaps you may find value in the important resource mentioned here, or know of someone who can use this information. Please feel free to share.

---

I hope this note finds you well and enjoying this wonderful fall season.

I wanted to take just a moment to send you a friendly reminder to obtain a free copy of your credit report by going to http://annualcreditreport.com/ . This site is the result of a Federal initiative mandating that the 3 major credit reporting agencies allow consumers free access to their credit report once every 12 months. I accentuate the word "free" here because there are several other websites with similar names which are not free at all. You can obtain all 3 reports at once, or perhaps spread them over the year, collecting one from each bureau at the start of each quarter.

I highly recommend that you take advantage of http://annualcreditreport.com/ every year as one additional step in protecting yourself from identity theft and to make sure your credit is in good order for the next time you need a mortgage or any other major purchase. I send you all the best wishes for a fantastic end to 2009 and a great 2010 ahead as well!

As always, if you have any questions about this email, or just want to say "Hello", I'm always here to serve you. Thanks again for your loyal business and referrals.

YOUR Mortgage Minute -- November 10, 2009

Good Morning,

I hope that this note finds you well and that your Tuesday is off to a fantastic start already.

In the Markets today, Mortgage Bonds are starting the day higher. There are no economic reports due today, but another record amount of debt is set to hit the Bond market this afternoon when the Treasury Department auctions off $25 Billion in 10-year Notes.

Most of the recent auctions--including yesterday's $40 Billion offering of 3-year Notes--have been well received. This has added much needed support as the Fed winds down their purchases and has helped keep Mortgage Bonds near present levels.

I recommend floating mortgage rate locks for now, to see if Bonds can continue the gains seen over the past several days. But be prepared to lock if the ceiling of resistance that's just above current levels negatively impacts Bonds. I will keep you posted.

Don't forget the Bond Market will be closed tomorrow in observance of the Veteran's Day Federal Holiday. 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 -- November 09, 2009

Good Afternoon,

A quick update on today's events. Mortgage Bonds are continuing to improve so far today, following the pricing gains seen since Friday's weak Jobs Report. Stocks are also trading sharply higher so far today after the G-20, a group of finance ministers and central bank governors from 20 world economies, pledged to keep aid flowing to global economies until a recovery was assured.

There are no economic reports today but there is plenty of supply hitting the market via the Treasury auctions, which could weigh on Bond prices. Also on Friday, in case you were not aware, President Obama signed the extended and expanded Homebuyer Tax Credit.

I recommend floating mortgage rates for now, but I will be watching closely to see how today's auction results impact trading. If a change of course is needed, I will certainly let you know. In the meantime, I hope that you enjoy your day and if there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- The Week that Was 11/02-11/06, 2009

Good Morning,

Last Friday's worse-than-expected employment report for September turned Treasuries, which had been under pressure most of the week, around. The unemployment rate soared to 10.2% -- the highest since 1983 -- from 9.8%, when 9.9% was expected.

This was just the medicine Treasuries, which struggled through a week loaded with positive economic reports, needed. The yield on the benchmark 10-year note fell below 3.50%, jumped back up and then headed back down.

Wednesday's Fed post-meeting statement said rates would remain low for an "extended" period, which was good news. But positive comments of economic activity "continuing to pick up" and a stronger housing market worried traders. In addition, three auctions of government debt were announced for this week, which usually initiates selling in Treasuries due to supply worries.

At its September meeting the Fed extended the date for buying MBS to March 2010, and there was hope that it would also expand its purchasing program. But that didn't happen, perhaps indicating a slowing of future purchases.

Positive economic news arrived early last Monday with the October ISM index on manufacturing conditions jumping to 55.7 from 52.6, led by an increase in employment. Analysts were expecting 53.

Pending home sales also rose 6.1% in September sending the index to 110.1 -- the highest it's been since December 2006. The first-time home buyer tax credit, which was extended to April 30, 2010, was a major factor in the increase. Also on the rise was construction spending for September, up 6.1% when a -0.3% was forecast.

Tuesday was quiet, as the markets braced for the Fed. But factory orders in September grew 0.9% and have risen five times in the last six months. In addition, inventories fell 1%, indicating strong demand for U.S.-manufactured goods.

Although Wednesday was all about the Fed, the ISM index on the service sector for October came in lower than the expected 51.7. It edged down to 50.6 from 50.9.

On Thursday Treasuries held their ground after early losses in spite of a 200-plus gain by the Dow. First-time jobless claims for the week ended Oct. 31 fell by 20,000 to 512,000, the lowest since January, and this put selling pressure on bonds. Initial claims have been above 500,000 for 51 straight weeks. Continued claims, those collecting benefits for more than one week, also fell, coming in at 5.75 million.

Productivity in the 3rdquarter rose 9.9% versus a 2ndquarter increase of 6.6%. Although high productivity is good for manufacturers, who get more output per hour, it doesn't do much to help the employment situation.

The employment report, heavily anticipated, was worse than expected. Jobs shed from U.S. payrolls came in at 190,000, which was higher than the 175,000 that analysts expected. And the 10.2% jobless rate is expected to keep rising into next year.

Wholesale inventories, which don't get any respect since they always follow the employment report, fell 1% in September. This turned out to be right on target, and inventory reduction is a good thing.

Mortgage rates edged down again during the week ended Oct. 30, but this time applications rose, at least for those wanting to refinance. Refis jumped 14.5%, but purchases fell 1.8%, according to the Mortgage Bankers Association.

This week is an odd one because not only are there few economic reports, but most of them have little influence on the markets. That leaves Treasuries open to outside influences, which makes it almost impossible to figure which way they'll go.

And to make matters worse, we don't get any news until initial jobless claims for the week ended Nov. 7 are released on Thursday. There is no consensus yet as to which way they'll go, but if claims fall below 500,000, Wall Street will likely rally and Treasuries will probably sell. Employment is the key to economic recovery; weekly declines in the number of people filing is a good sign for the economy, but not for bonds.

Friday ends with a couple of trade reports that have no influence on the markets. However, we'll get the University of Michigan/Reuters' preliminary consumer sentiment index for November, which should rise to 71.8 from 70.6. This could foster selling in bonds.

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 -- November 4, 2009

Good Morning,

Stocks are rallying higher this morning. Although this would normally add selling pressure to Bonds, Bonds are starting the day near unchanged levels and have actaully fared better as of the latest news today.

Yesterday, the Fed issued its Policy Statement without any big changes or surprises. In today's news, Initial Jobless Claims was reported lower than expected and at the lowest reading since the first week of 2009. Continuing Claims also dropped, but this is likely due to benefits expiring rather than people finding jobs.

Despite today's better-than-expected numbers, tomorrow's official Jobs Report will probably indicate continued weakness in the labor market, with the unemployment rate likely nearing 10%. Bonds are currently holding their own; therefore, I recommend floating as we await tomorrow's report. Have a great day! If there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute --November 4, 2009

Good Afternoon,

It's Fed Day and that means the Fed will release its decision on interest rates and its current Policy Statement later this afternoon. The Fed is expected to leave the Fed Funds Rate unchanged; however, it may offer comments or clues on future rate hikes or inflation concerns.

In other news, the House of Representatives approved legislation that would extend and expand the $8,000 tax credit for first-time homebuyers. While there is more work to be done, a bill may reach President Obama for his signature by the end of this week. I will continue to monitor this situation to see if you may be able to benefit from the bill once it's finalized.

For now, I recommend floating. But be prepared to lock if the Fed's announcement this afternoon adds volatility to the markets. As always, I will let you know if a change of course is needed. 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 -- November 3, 2009

Good Morning,

Happy election day! I hope you have an opportunity to exercise your right to vote today in the community where you live.

In the Markets today, Mortgage Bonds are near unchanged this morning, as they sit just below a ceiling of resistance at the 25-Day Moving Average.

There are no economic reports today. However, the Fed kicks off its two-day Federal Open Market Committee meeting with a statement to be released tomorrow afternoon. The markets will be listening closely tomorrow to see if the Fed hints at when they'll remove the mortgage rate friendly policy or begin hiking rates.

For now, I recommend floating. I will continue to monitor the markets throughout the day and keep you posted on any major developments. In the meantime, I hope you enjoy your day, get out to vote if you are able to do so in your community and if there is ever anything that I can do for you, please let me know.

YOUR Mortgage Minute -- November 02, 2009

Good Afternoon,

I hope that your week is off to a terrific start. Mortgage Bonds opened the week near an important technical level while Stocks have been improving throughout the day.

There are no Treasury auctions this week but there are several important potential market movers, including the Fed Meeting and Monetary Policy Statement on Wednesday, the Jobs Report with unemployment rate figures on Friday, and an expected final vote on the extension and expansion of the first-time homebuyer tax credit.

I recommend floating for now, but I will let you know if the news of the day or technical factors require a change of course. I hope you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.