Bonds had a nice rally yesterday and closed above a key level of resistance.  In order for confirmation of a technical break through the next trading day needs open above that as well......well bonds did not and they have given back 70% of yesterday's gains already.  The headline number of durable goods came in much better than expected.  Estimates called for negative 0.3% and the actual number was up 0.8%, stock market should open well today.  Friday's in the summer tend to be very volatile so expect yet another crazy day in the markets.

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The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgageswebsite or you can click to view Bryan Flynn's Mortgage profile

Mortgage Bonds have traded lowered for 4th straight session today losing just shy of 200 basis points over that period.  To get a rate quoted on Monday a client would now have to pay 2 points on their loan if they did not lock and wanted that , that is scary.

No economic news out this morning; movement today should be technically driven, the sellers are losing their steam and the buyers should be coming to market for a reversal in pricing.

Have a great weekend! 

__________________________________________________________________________________________________ 

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgageswebsite or you can click to view Bryan Flynn's Mortgage profile

 CPI was hotter than expected which is inflationary and bad for mortgage bonds.

CPI was estimated at .7% and came in at 1.1% year or year is 5%  

Core CPI, ex -food and -engergy,  was estimated at .2% and came in at .3% year or year it is 2.4%

It is the biggest CPI jump in a single month since 1982, biggest year or year  rise since 1991.  

Bonds are down 25 bps but are down 19 bps right now but it's still early......overall not a great number but you kind of had to expect this so it could be priced in already by the traders.

__________________________________________________________________________________________________ 

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgageswebsite or you can click to view Bryan Flynn's Mortgage profile

Another crazy day in this economy....the PPI was hotter than expected this morning which means inflation and the Retail Sales number missed.  The core PPI which takes out food and energy was slightly better than expected which is some positive upside, but really food and energy is an obvious concern.  Mortgage Bonds had a nice run up yesterday after their big brother, our government, backed Fannie Mae and Freddie Mac which confirms these companies are just too big to fail.

Stocks look to open down this morning as GM halted their dividend.  Technically bonds closed between the 50 and 100 day moving average but are giving back some of yesterday's upside as they are down 16 bps this morning.  The dollar hit a record low against the euro this morning as well.  Look for volatility today as Bernanke speaks before Congress.

__________________________________________________________________________________________________ 

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgageswebsite or you can click to view Bryan Flynn's Mortgage profile

The Crisis of Confidence....that's probably the best way to describe it. 

Friday was a crazy day in the financial markets being headlined by the potential failure of the government sponsors agencies (GSEs), Fannie Mae and Freddie Mac.  At the start of Friday it was reported the government could take over these agencies over the weekend and perhaps they would dissolve and rename them.  Well both stocks opened sharply to the downside. 

At about 2pm there were rumors that the Bernanke was going to announce the opening of the discount window to Fannie and Freddie to help solve their liquidity problems.  By 315pm the information was deemed untrue.  Freddie Mac rallied to positive territory and ended up closing slightly negative on the day, Fannie Mae was still done considerably.  After the close both GSEs made a statement saying they had well more than required by law in liquid assets to be okay.

....and then there was today, Sunday....Treasury Secretary Paulson announced they would open the discount window to the agencies so they would have that liquidity if needed.  Also they want the Treasury to be allowed to buy stock in the companies.

A quick refresher on mortgages...a lender provides the money to close the mortgage and then sells it to the GSEs who package them up with other like mortgages and convert them to bonds(or securities...same thing) THEN they are sold off to investors while a lender just services(collects the monthly payments) the loan for the investors and gets a fee.

However, the appetite for new bonds coming to market is weak, they are fearful of default, which to all of us lenders and agents out there we know they these securities are A+ and if the credit score is sub 719 without a huge down payment the GSEs are charging a decent sized risk premium.

These announcements are an added security blanket for the GSEs with investors, thus increasing their confidence.

Tomorrow Freddie Mac is scheduled to sell $3 billion in debt...I expect a strong sale of them and mortgage bonds to do well after their Friday afternoon sell-off.

In my opinion, the government dealt with this quite well.

__________________________________________________________________________________________________ 

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgageswebsite or you can click to view Bryan Flynn's Mortgage profile

Bonds have been on a wild ride this week trading significantly lower until a sharp turn around Monday afternoon followed by a big rally yesterday, opening at their low and closing just off their high.  The 30 year fixed rate is at it's best level in just over a month. 

Bonds and stocks both finished up on the day which is not a normal occurrence.  Oil was down over $5 on the day, the biggest one day drop in about 4 months. 

Technically bonds broke through 2 levels of resistance and are just 28 bps below the 200 day moving average, which will be their next level of resistance to overcome.  There are no major economic numbers for the rest of the week that should sway the market.

For the LOs out there....pricing should improve this morning as the late day repricing probably did not account for all of the upside benefit.  If bonds open flat this morning expect slightly better rate sheets and it should be a prudent time to lock in those deals. 

__________________________________________________________________________________________________ 

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgageswebsite or you can click to view Bryan Flynn's Mortgage profile

 Today is the last day of the 2nd quarter and the DOW is on pace to have its worse month of June since 1930.  A new oil intraday high of $143.57 just hit as well.  I just heard those stats and thought I should share.

This is my first update in a week, I was in training most of last week and had limited computer access.  Mortgage Bonds did rally last week after the Fed changed their policy statement preparing themselves to act if inflation worries continue.  Personal Consumption Expenditure was released Friday as well and the Core PCE which does not count food and energy was lower than expected estimated 0.2% and the actual was 0.1%; meaning inflation for now is in check.  Bonds closed at their high on Friday above 2 levels of resistance and are up 6 bps today.  Rates will be better this morning.

There is a lot of data to be released this week and being a short summer holiday week we should see a great deal of volatility.  When trading volume is down, volatility increases.

 945am today the Chicago PMI, officially known as the Business Barometer, will be released.  The key number is 50, a number higher / lower of that equals an expansion / contraction of the Chicago manufacturing sector which is an overall indicator of the national economy.

_______________________________________________________________________________________________________________________

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgageswebsite or you can click to view Bryan Flynn's Mortgage profile

This week is about about Wednesday and what the Fed is going to do.  It would be an absolute shock if they chose to raise rates to begin the fight on inflation.  Wall Street is most interested in what the statement is going to say about the issues and their views, expect volatility.....safe beat is to lock.

_______________________________________________________________________________________________________________________

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgages website or you can click to view Bryan Flynn's Mortgage profile

Bonds were off 3 bps on the day this Friday, aftering stalling out and not being able to break up the upward resistance line for the 3 consecutive day.  There was not economic released and the down did finish off down over 200 points and the S & P finished down 1.8%.  Unusual day for stocks and bonds both to lose stream.  However bond traders awaiting the fed decision on Wednesday, expect a very votatile week ahead.

_______________________________________________________________________________________________________________________

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgages website or you can click to view Bryan Flynn's Mortgage profile

 Rates were down modestly today 22 bps on the day.  Bonds tested both the closest support and resisitance levels and closed right in the middle of it....meaning we are in another tug of war with the bulls and the bears going into next week's Fed meeting.  From a technical standpoint bonds are still "oversold" so hopefully we can break through the resistance and get interest rates back down a bit.

_______________________________________________________________________________________________________________________

The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage.  Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223.  Bryan has worked in the Central Mass and Worcester area for the past 6 years as a mortgage loan officer.

More than likely, this is one of the largest and most important financial transactions you will ever make. I have a desire to help people out and love my job.  You might need a mortgage only four or five times in your entire life... but I do them every single day. It's your home and your future. It's my profession and my passion. I'm ready to work for your best interest.

For more information on my service please check out my Central Mass and Worcester Mortgages website or you can click to view Bryan Flynn's Mortgage profile