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bonds: Obama says we are "already out of money"...duh - - 06/04/09 08:58 AM
The Treasury has been going to town printing money...clear proof we are "already out of money".  The Treasury has literally been printing money at a record pace by way of Treasury auctions to pay for the massive spending.  How does that impact those attractive home loan rates you once were hearing about?  Let's break it down.
It's back to school with Economics 101.  Supply and Demand.  For months, our government has been trying to right the economy with various stimulus and bail out plans.  These plans cost money...money we don't have.  So how do we pay for it?  The US prints … (2 comments)

bonds: Mark-to-Market Changes Give Financials a Boost - 04/02/09 10:07 AM
Finally!  Changes to Mark to Market are coming.  The Financial Accounting Standards Board (FASB) voted favorably to relax mark-to-market and help financial institutions. Financial companies will now be allowed to use alternate models, like cash flow analysis, in marking their assets.  No longer will institutions be limited to using last-sale data in marking assets.  This enormous change will significantly reduce the write-downs banks have been taking on investments like mortgage-backed securities.  You can revisit my blog post of December 29, 2008 to learn more about mark-to-market and its impact on our current environment.
This change to mark to market is effective … (0 comments)

bonds: Where is the 4.5% Interest Rate? - 01/29/09 10:13 AM
Yesterday it was no surprise when the Federal Reserve said they would keep the Fed Funds Rate steady at 0 to .25%.  However, the committee did offer some positive expectations for homeowners.  They said that they continue to anticipate that "inflation pressures will remain subdued in coming quarters".  This forecast on inflation is bond friendly and will help keep home loan rates low.
The Fed said they will continue to purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets.  They went on to say they "stand ready to expand the quantity of … (1 comments)

bonds: Bad Bank By Big Brother? - 01/28/09 09:50 AM
Big Brother Washington is looking to put together a "Bad Bank" and it could be announced next week.  What the heck is a "bad bank?"  It's not quite what the name implies.  This Bad Bank is essentially set up to buy the toxic assets, segregate them into a so-called "bad bank", clean them up, then manage the sale of these assets. 
If business can't manage this...why do we think the government can?  Well, it's been done before - successfully.  The FDIC might manage the plan.  Yesterday Former FDIC Chairman, Bill Seidman (1985 - 1991) said that in the past they took … (0 comments)

bonds: Confidence Disappoints Stocks, Will Bonds Benefit? - 01/27/09 09:17 AM
Last night the Senate confirmed Timothy Geithner as Secretary of the Treasure.  Obama showed up to swear him in, which is a bit unusual.  It will be interesting to see how Obama's recovery plan will advance.
Consumer Confidence comes in lower than expectations and knocked the life out of stocks. Mortgage Bonds catch a slight bounce.  The conference board said they are beginning to see improvements in consumer expectations...could this be the result of renewed hope with a new President?
This afternoon a big supply of Bonds will hit the market at 1pm ET, when the Treasury will auctions off $40B in 2-year T-Notes.  … (0 comments)

bonds: What? Bonds Hear "Inflation"? - 01/23/09 09:46 AM
This morning, the entire Bond market, including Mortgage Bonds, are contending with the "I" word...inflation.   It may sounds a bit odd, however the traders in the pits have recently been talking about Obama's stimulus and rescue packages and the reemergence of inflation should they have a positive effect on the economy. 
To add to the trader chatter, this morning Fed member Frederic Mishkin was on CNBC saying that "inflation could come to the forefront given all of the government programs".  He went on to say that "once the economy recovers, liquidity must be taken out of the markets" - this means the … (0 comments)

bonds: Bonds Hanging In Mid-Air - 01/21/09 09:21 AM
Yesterday, the stock market dropped sharply with its worst-ever performance on an Inauguration Day.  More often than not, the stock market has declined as a new presidential term is greeted.
What may be surprising to some is that the Bonds didn't benefit.  Trading was thin as Washington was essentially shut down and our Fed wasn't buying Bonds.  Seems everyone tuned into the Inauguration.  This thin trading exacerbates the volatility in the market. 
Today, Obama's pick for Treasury Secretary, Tim Geithner will be in the spotlight as he appears before the Senate and answer to his tax "mistakes".  However it appears this … (0 comments)

bonds: New Year for Mortgage Bonds - 01/02/09 09:22 AM
Happy New Year!  Today is the first trading day of 2009 and Mortgage Bonds opened just a little bit higher this morning.  Look out though, that could change.
Just a few minutes ago the ISM index was reported showing the fifth consecutive monthly decline.  This index is a key manufacturing gauge. 
Today, the SEC Chairman Chris Cox is expected to get back to Congress with ideas, if any, on how to address Mark to Market accounting.  If Cox presents a plan that modifies the valuation in such a way that large discounts and write downs are minimized then the financial sector … (0 comments)

 

Elizabeth Rose - Certified Mortgage Planning Spec - Texas

Highland Village, TX

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Network Funding, LP

Address: 2800 Corporate Drive, Suite 101, Flower Mound, TX, 75028

Office Phone: (972) 244-3121

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An inside look at the mortgage market and how it might affect you.


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