Mortgage Market Report for Tuesday November 13, 2007
Stocks appear to be opening higher on the back of strong earnings from Walmart. The Retail Sales report will be out tomorrow. Traders are expecting a strong retail sales number that could be bad for bonds and good for stocks.
Morgan Stanley has disclosed that they have an additional 6.7 Billion dollar exposure in the subprime mortgage area. This brings their total up to $12.7 Billion.
Warren Buffet is may be entering into the bond insurance business. With his firm Berkshire Hathaway with more than $45 billion in cash and much experience in insurance he can become a bond insurance kingpin quickly.
The mortgage bonds are hovering around the 25 day moving average and their path will likely continue to be driven by stock prices. We recommend that you continue to float as long as the mortgage bonds stay above the 25 day moving average.
Thank you for listening and we will continue to bring you current information in todays changing mortgage world. This website will be updated with additional informational reports later this week. I will have another mortgage market report for you tomorrow.
Roger Herrick
California Mortgage Broker
www.ContactHerrick.com
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