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interest rates: Air, Food, Water...and a Job Please! - 01/28/10 02:11 PM
Last night many American's tuned in to Obama's first State of the Union Address. With concerns of jobs and the economy on our minds...it was impossible to miss this statement, "Jobs must be our No. 1 focus in 2010, and that is why I am calling for a new jobs bill tonight." For most of us...after air, food, and water...having a job is pretty important. It's nice to hear that Obama may turn his attention from his healthcare objective and give a little attention to jobs. However, what struck me as odd is I could have sworn the primary objective of the … (0 comments)
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interest 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)
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interest 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)
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interest 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)
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interest rates: 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)
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interest 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)
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interest rates: 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)
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interest rates: Will Hope Float Bonds on Inauguration Day? - 01/20/09 09:23 AM
After being closed for 3 days, there are no fireworks for Mortgage Backed Securities (MBS) this Inauguration morning. In fact, they are lacking any enthusiasm as they opened lower... below the 25 day moving average and support, plunged 38 basis points searching for the next support level, and thankfully caught a slight bounce back. Currently MBS are down 9...and rates are higher from Friday.
Banks continue to feel the pain. Bank of America announces they are cutting 4,000 jobs in New York. Regions Financial is reporting losses, State Street reporting drop in profits of 71%. Financial stocks opened lower this morning … (0 comments)
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interest rates: 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)
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Elizabeth Rose - Certified Mortgage Planning Spec - Texas
Highland Village,
TX
More about me…
Network Funding, LP
Address: 2800 Corporate Drive, Suite 101, Flower Mound, TX, 75028
Office Phone: (972) 244-3121
Cell Phone: (972) 345-3268
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An inside look at the mortgage market and how it might affect you.
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