Another crazy weekend in the world of mortgage backed securities. Looks like the FED'S may need the luck of the Irish today to reverse current market trends. So what happened:

  • The central bank approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately, and created a lending facility for big investment banks to secure short-term loans. The new lending facility will be available to Wall Street firms on Monday.

    The rate cut announced Sunday applies only to the short-term loans that financial institutions get directly from the Federal Reserve. It doesn't apply to individual borrowers. I think we will see another 1/2 point cut this week.

  • JPMorgan Chase agreed to buy rival Bear Stearns for $236.2 million in a deal. Works out to about $2 a share. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets, according to Chase. So looks like they bought the company like a FHA purchase. 100% with DPA.
  • Asian stocks plunged Monday after the Chase and Fed announcements

  • Get ready for a wild ride Monday. Just to add a little more, Oil prices added another price record.

Not much we can do about it but buy some houses and refinance some mortgages. Hope everyone has a great St. Patricks Day.

Tony Grego - Indiana Mortgage Company

 

8 Comments on Is Today the Day to Lock Rates?

Tony,

I, too, am wondering how everything you listed today is going to affect the bond market and mortgage backed securities. 

03/17/2008 07:46 AM by Julie Chapman Realty Homes Brunswick Georgia

Not today I think... I really don't know.... Money should get cheaper if its available... I might be wrong....

03/17/2008 07:51 AM by Debbie Holmes (Gold Key Real Estate)

Hey Julie!

This week should be Ok for the bond market. When you compare it to what is going to happen on Wall Street today (and this week) it may be the only way to get some gains. Usually when you see money going to bonds rates tend to trend downward. I also feel that the increase we have had over the last 10-days has been done to react to the FEDS meeting this week. Guess we will see.

Tony

03/17/2008 08:38 AM by Tony Grego with AmeriSave

Hey Debbie!

I do not think it is a problem with funds. Plenty of money to go around. When you combine volume along with the number of players left lending standards are getting higher. If you conventional or FHA and above limits your going to have a problem. Investors just do want that business. They do not need it with all of the guaranteed funds avialable.

Tony

03/17/2008 08:40 AM by Tony Grego with AmeriSave

Tony, got the saftey bar in the lowered and locked position and ready.  Lock forms freshly printed.... Now to just hit the target the clients expect

03/17/2008 09:01 AM by Joe Adams (Major Mortgage USA/Branch Manager)

Hi Tony! Thanks for the update!

03/17/2008 03:34 PM by Amanda Schick (Estridge)

 You got it Amanda!

With two mid day cuts it has been a crazy day

 

Tony

03/17/2008 04:23 PM by Tony Grego with AmeriSave

Hey Joe!

know what you mean. May never get out of here today.

Starting to be a fun job again (just kidding)

Tony

03/17/2008 04:24 PM by Tony Grego with AmeriSave

Leave a response…

Name:
Notify me of new comments:
Comment:
What does the graphic say?
 
Mortgage Company: Tony Grego with AmeriSave
Tony Grego, Your Place for Great Rates!
Indianapolis, IN
More about me…
Tony Grego with AmeriSave

Office Phone: (317) 641-2891
Cell Phone: (317) 714-8080
Email Me

Watch live video from Tony Grego, Mortgage Broker Channel on Justin.tv
Google
 
Google PageRank Checker - Page Rank Calculator Add to Technorati Favorites Join My Community at MyBloglog! Real Estate Valuations Real Estate Blogs Directory - Directory of real estate blogs and blogs of industries affiliated with and serving the real estate industry.
Who links to me?

Links

Tags (Tag Cloud)

Archives

RSS 2.0 Feed for this blog
ATOM 1.0 Feed for this blog

Find IN real estate agents and Indianapolis real estate here on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2007 ActiveRain Corp. All Rights Reserved