mortgages: Today's Market News
- 02/12/08 01:24 AM
Bond prices rose a touch on Monday in quiet trading. The big news of the day came from insurer AIG who said that its prior accounting for credit default swaps was in error and the previously reported $1.6 billion in write-downs really turned out to be $4.88 billion. The error was found by PWC auditors and will probably not be the last one auditors identify at companies in the coming months as the turmoil of the fall, complexities of instruments, and illiquidity stretched accounting and other systems and procedures. Wow...honest mistake or more behind the facade? There was also news on Monday that … (0 comments)
mortgages: Today's Market....the cyclone continues to spin....
- 02/08/08 01:42 AM
Today's Market CommentaryBond prices plunged on Thursday as a miserable thirty-year auction, hawkish comments from Dallas Fed President Fisher, and technicals combined to batter bonds. Yields rose 15bp or more across the bulk of the curve. Despite selling at the lowest level since 30yr auctions began in 1977, the long-bond auction was very weak as the award rate of 4.449% was much weaker than the bid side of the market (4.404%) at auction time. The indirect allotment was 10.69% and the coverage ratio was 1.82. This compares to a 27.2% and 2.13 average, respectively, for the last six 30 year auctions. … (4 comments)
mortgages: Today's Markets....what does this mean for you?????
- 01/31/08 01:32 AM
The Federal Reserve conformed with median expectations, cutting the Fed Funds and Discount rates 50bp on Wednesday, just over a week since its surprise 75bp cut. In addition, the Fed stoked expectations for further easing by noting that "downside risks to growth remain" and that the Fed would "act in a timely manner as needed to address those risks." There was one dissenter, Dallas Fed Fisher, who preferred not to take any action. It was the fourth meeting in a row at which there was a dissention of some sort. The curve steepened in response to the action as short and … (0 comments)
mortgages: 730,000 FHA Limit? Unreal....stay tuned...sooner than later
- 01/25/08 12:39 AM
Significant action is being taken by the federal government to stabilize the housing market - Hot off the press from our industry cooperative partners As part of the economic stimulus package being negotiated by House Democrats and the Treasury Department, Fannie and Freddie loan limits will increased for one year up to $730,000. The increase will be adjusted for local markets at 125% of local median home price. The move will significantly improve liquidity and pricing in the jumbo market. The agreement also includes raising the FHA loan limits to the same amount. We are trying to confirm whether the … (0 comments)
mortgages: Today's Market Commentary....rates on the rise!!!! The Market Whiplash
- 01/24/08 01:20 AM
The New York Times called yesterday "Whiplash Wednesday", a term which best describes action in the stock and bond markets amid extremely high volatility which is not likely to subside soon. The Dow spanned a nearly 600 point range, being down sharply in the morning but closing up nearly 300 points on the day. Bond prices moved inversely to stocks. The two-year Treasury saw its yield fall to 1.84% amid stock weakness but the stock rally brought the yield up to 2.15%. Such a move would be a big one for any given week but for it to occur in one … (7 comments)
mortgages: Today's Market Commentary....rates continue to drop
- 01/23/08 01:54 AM
Yields fell across the curve on Tuesday as stocks plunged, expectations of a recession rose, and the Fed cut the Fed Funds and Discount rates by 75bp, the largest single cut since 1982. While most of the move in Treasuries occurred before the Fed's 8:20am EST announcement, volatility continued throughout the day. The 35bp drop in the two-year's yield was the biggest single day decline since trading resumed after 9/11 and the 30bp decline in the five-year eclipsed the post-9/11 dip. The ten-year's nearly 20bp decline in yield was the biggest since the Fed's surprise January 2, 2001 rate cut. Impressively, … (10 comments)
mortgages: Here's the info as it is set forth by the Federal Reserve....
- 01/22/08 12:50 AM
Release Date: January 22, 2008 For immediate release The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent. The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets. The Committee expects inflation to moderate in … (3 comments)
mortgages: World Markets Reel...Rates are Rocking....Time to get this party started!!!
- 01/22/08 12:29 AM
Fasten your seatbelts...Yields fell a touch on Friday with the curve steepening. The UofM consumer confidence index rose unexpectedly but remains well below its averages. Yesterday, US markets were closed but global stock markets were open and plunging. The global meltdown continued overnight and brought most major world stock markets down over 10% for the week. The Fed this morning cut Fed Funds by 75bp to 3.50%, following is the text of the FOMC's statement: The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent. The Committee took this action … (2 comments)
mortgages: Today's Market Analysis
- 01/15/08 12:48 AM
Bond prices moved little on Monday despite a strong day in the stock market. Bond market rumors focused on heavy losses at Citigroup. This morning, those rumors were mostly confirmed with the bank's announced fourth quarter loss which was dominated by a $17.4 billion subprime charge. Citi will cut its dividend 41% and will issue another $14.5 billion in preferred stock. Merrill is receiving a $6.6 billion infusion from a consortium of foreign investors. Earnings announcements will dot the landscape for the next several weeks. This morning, bond prices are a bit higher and have shown little reaction to the morning's … (0 comments)
mortgages: Facts You Need to know!!!!! Regarding The Home Lending Industry
- 01/14/08 05:21 AM
FACT: The homeownership rate remains near record levels at 68.2 percent.FACT: Thirty-five percent of homeowners own their home outright; 48 percent are in fixed-rate mortgages. Fifteen percent of homeowners have adjustable-rate mortgages (ARM). Only 5 percent of homeowners are nonprime borrowers with adjustable-rate mortgages. FACT: ARM products have a long and successful history, and nontraditional products have allowed many first-time homebuyers to own their homes. FACT: About 1.7 percent of all loans are in the foreclosure process. FACT: In today's market, trends indicate that more than half of people who enter foreclosure eventually lose their home; however, there are no reliable data … (5 comments)
mortgages: Cherry Creek Grows Again in 2007
- 01/11/08 02:43 AM
Not by much at all, but not many companies in North America can say that they actually grew in 2007. We did! Our profits were fine and our fundings grew. But most importantly we grew significant market share nationally. While other companies closed their doors, merged or just struggled to stay open, it is now official....We grew in a year that we weren't supposed to. Of course, the sub-prime matter doesn't make it easy for us or for a myriad of other lenders nationally. There is a lot of fallout because of that. The demise of a lot of top wholesalers … (0 comments)
mortgages: More News On Countrywide
- 01/10/08 07:06 AM
Today at lunch, the lunchtime hour was the focus on CW. The program was titled "Countrywide on life support." Now it seems that they are in negotiations to be bought by B of A. Interesting developments. This would be so much better than having CW go bankrupt (BK). Going BK will hurt us all. I received 2 calls today and met with one person who have all left CW very recently. The song's the same. But as someone wrote earlier this morning,...it is what it is and only time will tell what shakes out. I hope that they sell and not go … (7 comments)
mortgages: Today's Market Analysis
- 01/10/08 12:49 AM
Yields rose a few basis points on Wednesday as the bond market took a break from its recent rallies. Stocks, especially financials, had another wild ride, falling sharply throughout the day before being rescued just before the close. There were no economic reports released. St. Louis Fed President Poole, a non-voter on the FOMC who is about to retire, spoke quite dovishly about monetary policy. He said, "Stable inflation expectations give the Federal Reserve a lot of room for maneuver. If evidence suggests that substantial policy easing is appropriate, I don't think we're going to face a risk of adverse inflation … (2 comments)
mortgages: Is the Countrywide Bomb about to explode?
- 01/09/08 02:24 PM
All over the news Countrywide is denying that it's having a cash problem. I mean, if you borrow 11 billion dollars over the last 60 days, let's be real...it just doesn't go to far. Today I had lunch with a Capital Markets guru who buys and sells on the secondary market and he believes that CW is poised for a big fall. I believe it. I have a lot of friends who work at CW in different towns. One of my pals is a mucky muck there and he says that he calls 3 other branch managers three times a week … (8 comments)
mortgages: High Unemployment bodes well for interest rates...unfortunately.
- 01/04/08 02:56 AM
Today's Market CommentaryThe curve steepened slightly on Thursday with the two-year's yield falling 5bp while the ten-year was little changed and the yield on the long-bond rose a touch. Trading activity was light ahead of today's payroll report. This morning, bond prices are sharply higher with two to five-year yields down 15bp to their lowest levels of this cycle following a disappointing employment report. The economy created a mere 18,000 non-farm jobs in December, well below the anemic estimates of 70,000. The prior report was revised higher by 20,000. The unemployment rate surged to 5%, up 0.3% to its highest level … (0 comments)
mortgages: Today's Market News...really ain't that all new
- 12/13/07 01:43 AM
Today's Market CommentaryThe past 48 hours have been among the most confusing in years as the Fed, by delaying its announcement of its liquidity facility for 18 hours after the FOMC meeting, created wild market swings and added to concerns that they are behind the curve. Bond prices plunged on Wednesday, sending the two-year's yield up 21bp and the ten-year up 10bp, almost completely erasing Tuesday's equally sharp rally in bonds which followed the FOMC meeting. In the 24 hours following the FOMC's meeting, the two-year traversed a 35bp range, traveling a total of 55bp overall. Stocks soared initially on Wednesday, … (1 comments)
mortgages: What's caused the rebound in our mortgage markets today?
- 12/12/07 06:01 AM
Stock markets were disappointed in the Fed's Tuesday policy decision, mainly that the Discount rate (the rate the Fed lends to banks) wasn't trimmed by 0.5 percentage point. The takeaway was that the cut was insufficient given the worry over further damage to the financial sector. The gains in bonds were flight to safety. Yet, today, the Fed joined four other central banks in announcing plans to thaw the credit freeze that threatens economic growth. The Fed said it would lend $40 billion, perhaps more, at rates below the Discount rate but accepting the same collateral. European Central Bank, Bank of England, … (0 comments)
mortgages: Fed Makes it's Move....Merry Christmas
- 12/11/07 05:26 AM
Borrowers Get Year-End Gift from Fed The Federal Reserve lowered interest rates today for the third straight meeting of the FOMC. What does this mean? Well, if you're looking to capture the best home loan rates, you need to act now. For those with an application already in process, you should probably lock your rate as soon as possible. And, for anyone who has yet to begin a loan application, what are you waiting for? Rate Hikes on the HorizonDespite this latest cut from the Fed, rates for many borrowers could actually increase soon. Why? Because Fannie Mae and Freddie Mac have … (0 comments)
mortgages: Today's Market prior to the Fed Move
- 12/11/07 01:25 AM
Today's Market CommentaryYields rose again on Monday, bringing the rise over the past week (since Monday, December 3) to 30bp across the curve. Stocks were fairly strong and financial stocks enjoyed a continued recovery, partially in response to news of significant cash infusions, despite continued losses. MBIA announced that they will receive a $1 billion investment from Warburg Pincus, seeking to shore up its "AAA" rating. While the capital infusion was a significant positive, much of the capital will be immediately eaten through to offset Q4 losses. MBIA said, deterioration in residential mortgage-backed securities (especially prime home equity LOC and seconds) … (0 comments)
mortgages: Today's Mortgage Market Deterioration
- 12/07/07 04:30 AM
Yields rose rather sharply on Thursday for the third straight day, leaving the curve slightly higher than Friday's close. The Paulson plan to stave off some foreclosures found criticism from both sides, those saying it's not broad enough and those saying it goes too far (isn't that the definition of the perfect compromise?). For detail on the plan, see the American Securitization Forum's website. In reality, the plan appears modest, not inconsistent with current documentation and fiduciary responsibilities, and constructive. FNMA priced its preferred stock deal, paying 8.25% (roughly 11.3% tax-equivalent) for the first three years until it will float. This … (0 comments)
1 “Let not your heart be troubled; you believe in God, believe also in Me. 2 In My Father’s house are many mansions; if it were not so, I would have told you. I go to prepare a place for you. 3 And if I go and prepare a place for you, I will come again and receive you to Myself; that where I am, there you may be also. 4 And where I go you know, and the way you know.” (John 14:1-4, New King James Version)
Bond prices rose a touch on Monday in quiet trading. The big news of the day came from insurer AIG who said that its prior accounting for credit default swaps was in error and the previously reported $1.6 billion in write-downs really turned out to be $4.88 billion. The error was found by PWC auditors and will probably not be the last one auditors identify at companies in the coming months as the turmoil of the fall, complexities of instruments, and illiquidity stretched accounting and other systems and procedures. Wow...honest mistake or more behind the facade? 
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