News is rolling out of Wall Street at a very high rate. Volatility is the name of the game for now and lenders have to watch the market minute by minute. Rates will be spiking up and down all day. All and all expected 30 yrs fixed mortgage rates in Kansas to hold in the high 5's.
Morning Market News
The Dow opens lower by 200 points as investors digest the bailout of AIG and the stability of financial system. Oil at $93 up $2.
8:40 AM ET - Housing starts fall 6.2%, the lowest in 17 years while building permits fall to a 26 year low down 8.9%
8:18 AM ET - AIG gets bailed out by the government to the tune of $85 billion avoiding a catastrophe as the government has added insurance to its umbrella - it entered into the mortgage business last week with Fannie/Freddie. Mortgage Bonds slightly higher. Stock futures lower.
"Mortgage Bonds are trading this morning in a 44bp range and are modestly higher as Stocks are under heavy selling pressure. On the news front, the Fed gave insurance giant AIG an $85 Billion lifeline to keep it from going into bankruptcy. The two-year loan from the Federal Reserve was in return for a 79.9% stake in the company's stock. This gives AIG some breathing room and time to sell assets to repay the 2-year note.
Housing starts hit a 17-year low and building permits were below expectations. While the market expected bad numbers, this sector needs to get fixed as it is a key catalyst in turning the economy around. Housing starts for August were 55,000 lower than expected. Additionally, Fed Governor, Elizabeth Duke is scheduled to testify this morning before the House Finance Committee on mortgage mitigation. Given the scope of this issue, her remarks will be important and could impact the vibe of the financial markets.
Given today's market conditions and the volatility we are seeing as Lawrence Kansas lenders, we recommend carefully floating."
Bob Buchanan | Co Founder
First Assured Mortgage
4830 Bob Billings Pkwy., Ste. 101
Lawrence, KS 66049
P. 785-856-LOAN (5626)
C. 785-766-3788
F. 785-856-RATE (7283)
E. bobb@firstassuredmortgage.com
W. www.firstassuredmortgage.com
I decided to sponsor this new Localism Lawrence Kansas Home Loans and Mortgages community because I need a place for my buyer clients to go to when they need info like what is shown above on home loans and mortgages in Lawrence Kansas and the surrounding area. Consumers wanting to buy a home need to know when a good time is to lock their rate or when to float (wait for the rates to drop a little more). They need to know how to find the best deal among all the Lawrence Kansas lenders.
Lawrence Kansas Homes for sale can be purchased with a variety of loan programs. Some loans are designed for first time home buyers, some are designed for consumers who have at least 20% down payment while other loans are no money down through down payment assistance programs. Some loans are for commercial properties and some are for investors.
Consumers wanting to buy a home for the first time need to know about the $7500 tax credit that is available for another 9 months or so. Please feel free to ask Bob or myself about this great incentive.
To take care of my buyer clients, I need several professionals backing me up in their various fields. A Lawrence Kansas mortgage marketplace broker who I have found to be very helpful and informative is Bob Buchanan.
Thanks and "Don't keep me a secret--I'm never too busy for your referrals!"
Rob (FREE Home Warranty with every home you buy or sell through me!!)
Rob Lang, CRS, ABR, ePro, GRI, CFPS Realtor®
Sellers www.MLSPlease.com (Marketing homes to 4 MLS's, to over 100 websites, "Showcase" Realtor.com listing, and virtual tours)
Property Searches www.LetRobDoIt.com
Places for Rent or Lease www.KSLease.com
Blog www.ActiveRain.com/blogs/langrob
Realty Executives, Hedges Real Estate (three convenient locations)
(Serving Lawrence, Eudora, Baldwin, Topeka, Olathe, Tonganoxie, Leavenworth, Kansas City, McLouth, Wellsville, Ottawa, Berryton, Tecumseh, more)
300 Rockfence Place, Lawrence, KS 66049
1037 Vermont, Lawrence, KS 66044
3300 Clinton Parkway Ct., Lawrence, KS 66047
785-393-2274 (cell) 206-339-3199 (fax)
Rob@YouWantHouses.com
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