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home loan rates: 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)

home loan rates: Who Moved My Cheese.... - 07/14/09 10:20 AM
Better than expected earnings from Corporate America, higher Retail Sales and a hot Producer Price Index has moved our 30 year Mortgage Back Security from the cheese platter to....the waste basket?  Oh no....
The producer price index is a reading on wholesale inflation.  The headline number was hot and after stripping out energy and food, the core number was quite a bit better than expected.  Of course there still is no fear of inflation just yet, but today shows us that any suggestion of future inflation can ruin the day in the bond markets.  Tomorrow will get a better idea of … (0 comments)

home loan rates: 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)

home loan rates: 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)

home loan rates: 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)

home loan rates: 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)

 

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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