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federal reserve: Hear the whistle blowin'...how will the Fed's exit affect you? - 03/31/10 03:34 PM
Today...the Federal Reserve exits the train station and ends their 15 month long buying spree of mortgage backed securities (MBS).  This purchase program helped bring some stability to the housing market since its inception in January 2009.
Looking back to late 2008, mortgage rates were in the 6.5% range and housing was on a fast downward spiral.  The government wanted to bring rates lower to stimulate housing, thus making it cheaper to buy or refinance homes.  In order to bring rates down, there has to be an appetite for buying MBS.  At that time very few investors were buying MBS, so the … (1 comments)

federal reserve: 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)

federal reserve: Jobs, Jobs, Jobs... - 02/05/09 09:58 AM
It's been a busy and bleak week in the markets with numerous economic reports, stimulus chatter, corporate earnings (losses) reports, and the list goes on. 
The unemployment lines are growing longer.  On Wednesday, the ADP survey showed a grim private sector job loss of 522,000 for January.  Today, Initial Jobless Claims (these are people filling for the first time) registered at 626,000 which is just a little higher than the estimates of 580,000.  This is the highest level since 1982 and points to an ugly report tomorrow.   Tomorrow is the Grandaddy of Jobs Reports - and the markets are already braced for … (0 comments)

federal reserve: Mortgage Bond Market Losing Steam - 01/30/09 09:48 AM
Bonds are getting beaten up today.  There's a saying in the market... "the trend is your friend" meaning that the trend helps you make proactive decisions to better manage your investments and your expectations. 
While it is our friend it sure isn't being so friendly in the current direction.  It was a mixed bag of economic news this morning with more poor corporate earnings reports, oil on the increase, and GDP coming in better than expected.  This mixed news had bonds bouncing around this morning.
I'm not sure the Fed is really helping us much either.  As I mentioned yesterday, the … (0 comments)

federal reserve: 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)

federal reserve: 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)

federal reserve: 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)

 

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

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