Mortgage Market Update - 3/31/08

Today the Stock market struggles out of the gate and Bonds are up slightly. The Chicago Purchasing Managers Index reported better than expected read on Manufacturing. The report showed that Regional manufacturing was at 48.2 up from 44.5 the previous month. The market was expecting a read of 46.0...signaling a welcome increase. However, any read under 50 still signifies that the market is still weak.
On other news...Alphonso Jackson (HUD Secretary) announces his resignation effective April 18th, 2008. He is under investigation over a friend who was paid $392K as a construction manager in New Orleans post Katrina.
Treasury secretary Henry Paulson lays out the Bush Administrations plan to overhaul the Financial Markets. The changes would mark the biggest overhaul to Wall Street since the Great Depression and would allow the Central Bank more control. It would take a couple years to fully engage the policies and prior attempts have failed. Only time will tell and this will certainly prove to be the one to watch!
Reports due out tomorrow: ISM Manufacturing, Construction spending and Vehicle Sales.
That's a wrap...Good Luck

Mortgage Market Update - 3/18/08

All eyes on the FED this morning as many expect a huge drop in Fed Funds rate...some suggesting more than a point. That would put the prime lending rate at 5% or less...The question remains, Will this spark the economy?

Banks are still tight on lending. Especially in the Jumbo sector and reduced LTV's. And Wall Street is nervous on the possibility of more fall out from the lending institutions. I can honestly say I agree with them on their concerns. Sit tight and get ready for the wild ride ahead...
Housing starts due out soon, along with reports from Lehman and Goldman Sachs...These reports alone could send the Stock market on a plunge. Get ready for a wild ride today.
More update at 10:00am...

Mortgage Market Update - 3/17/08

A lot going on in the market right now. First the big news over the weekend...The Fed cut the discount rate by a quarter and JPMorgan Chase is acquiring Bear Stearn. The Fed's discount rate cut to 3.25% (from 3.5%) should provide banks more ways to obtain short term loans. The Fed will meet on Tuesday to lower the Fed's fund rate...currently expecting a cut of .5%...This would affect the rates given to consumers for short term loans.

The buy out of Bear Stearn has wall street nervous this morning about the financial markets. The Bond Yield is currently at 3.37% and mortgage interest rates have posted out slightly better than Friday. I recommend locking and keeping a close eye on the financial markets today. Anything Goes, expect the unexpected!

Good Luck,

Mortgage Market Update 2/25/08

Stocks and bonds...What will we do... Homes Sales data showing January sales down .04% from December...This was expected. However the stock market may survive today off the talks of Ambac...The bond insurer that is close to reaching an agreement for more capital.
Anything goes this week. Watching the Bond Yield (currently at 3.82%) a drop below 3.8 could cause a mid day price for the better. However a rise over 3.85% could be a rate increase.
Keeping you posted!