First Quarter earnings season has gotten off to a rocky start as aluminum company Alcoa, and chip makers Advanced Micro Devices and Novellus Systems reported weak earnings. This has sent a bit of a negative tone over the stock market this morning, which has kept bonds fairly favorable. The bad news for bonds could be […]
Friday’s weak Job Report number put a bit of wind back in the sales of Mortgage Backed Bonds on Friday which helped rates out during the day. This morning however, we have seen the stock market rally a bit and pull money out of the bond market taking some of that momentum away. (Remember that […]
The Jobs Report is in and does not look good. This morning the Labor Department reported a loss of 80,000 jobs in March- the biggest monthly job loss in 5 years. The good news is that this has helped Mortgage Backed Bonds trade about 34 basis points higher on the day. This has pushed rates […]
You Tube link to see rate update video: no video today Mortgage Bonds are trading higher today after a weaker than expected initial jobless claims report provided a slight boost. This boost has kept bonds trading above the important 50 day moving average. The initial jobless claims were reported at a worrisome 407,000, reaching their […]
Hopefully your clients took our advice to lock in yesterday ahead of rates moving higher. This morning mortgage-backed bond prices are making another attempt to break below the 50-day moving average. You’ll notice in circled area below that the red bar (bond prices) is right on top of the black line (50-day moving average). This […]
This loan program carries a 30 year fixed interest rate with a 10-year interest-only payment period. With this program your interest rate remains fixed for the entire 30 year term of the loan. What makes it different from a standard 30 year fixed rate mortgage program is that for the initial 10 years the lender […]
In this weekend’s Barron’s there was an article that featured a Q & A with Merrill Lynch Chief Economist David Rosenburg. He is credited with calling the current economic slowdown far before anyone else and makes interesting predictions about American Households’ spending patterns in the future: Here is a excerpt from the article: Q: Will […]
We’ve talked frequently in ‘rate update’ about the impact that a strong stock market can have on mortgage rates (generally speaking, a rallying stock market will push mortgage rates higher). Currently the Down Jones Industrial Average is up over 200 points. The rally is being credited to two main points: Watch today’s you tube video […]
Mortgage-backed bonds rallied on Friday helping rates move lower this morning. There is not much in the way of economic data out today so we will be watching the stock market to get a read on investor sentiment. Currently the major indexes are essentially trading flat on the day. On Friday the monthly jobs report […]
The WSJ reported this morning that Treasury Secretary Hank Paulson will unveil an overhaul to the regulatory system for the financial markets on Monday. This should be very interesting. One of the provisions in the article calls for a Federal system for state monitored mortgage companies. Here is the article: Sweeping Changes in Paulson Plan […]