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Two Minutes with Todd 9.29.08 - Here comes the vote!

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Mortgage and Lending with HomeStreet NMLS ID#218341 BK#0909801

Hi Team,

First I want to welcome all of my new subscribers and to thank everyone who has referred new viewers and new clients this week. I truly appreciate it.

Wow - that sums it up after another crazy week in the financial markets. The House and Senate are set to vote on the $770 billion "bail out" package. I skimmed the 110 page document this morning. It is a bit overwhelming! The bottom line is that it looks like it will pass in an attempt to bring stability and liquidity to the world financial markets.

Now into the usual summary for the week: The Freddie Mac Primary Mortgage Market Survey for last week was 6.09% with .7% Fees/Points for a 30 year fixed rate loan (up from 5.78%, .6% Fees/Points). The 15 year fixed rate was 5.77% with .6% Fees/Points (up from 5.35%). Mortgage bonds are receiving a boost today as money is moving out of stocks and into bonds as a safe haven for investment money in an uncertain time.

What will move bonds this week? Fear and uncertainty, not the usual economic data. That said the "high impact" reports this week will include this mornings PCE (Personal Consumption Expenditure). This report is a gauge of inflation on an individual level for consumers. It came in high this morning but is being dismissed by the market amid the turmoil. Tomorrow is the Chicago PMI number that measures sentiment of purchasing managers. It is closely watched as the following day the ISM index comes out reporting a snapshot of the factory sector with regards to if it is expanding or contracting. This week they are expecting a reading of 50.0 just on the line of the tipping point. Since last month it barely showed contraction at 49.9% this will be closely watched. Friday is the morning I'll be glued to my computer when the Jobless Claims and Unemployment Rate are released. Those of you have been previously listening to me know that this has been a big market mover - often setting the tone for the rest of the month. With unemployment topping 6% last month most people either know someone affected by this or have become a market statistic themselves. It is expected to be another big job loss number. As I mentioned above - although these reports usually drive the market, fear, rumors, and emotion will be determining where rates go from here.

If you, your clients, friends and family do not have a mortgage strategy in place - GET ONE NOW! The opportunities are brief in volatile markets like this. Here is the link to my Auto Lock form. http://www.optusmortgage.com/PageContent.aspx?PageID=64.

I'm here for questions, comments, and concerns. Have a great week. Todd

Todd Bookspan, MBA The Optus Group, Scottsdale AZ Todd@ToddBookspan.com (602) 522-9494

p.s. for those of you who are watching this for the first time - this is my weekly market update. The goal is to keep it to two minutes, update you on current interest rates, tell you what may move the market this week, and finally some talking points about what is happening in the financial world.

Comments (2)

Arizona Real Estate Associate Broker
MR Realty - Mesa, AZ

Todd - this is so awesome! Love the video attached with your two minute updates! So kewl and see that this is going to be so effective with your clients. Fantastic idea~ your newest subscriber~ keep the videos coming! Thanks!

Oct 03, 2008 09:36 PM
Todd Bookspan, MBA
HomeStreet - Scottsdale, AZ
Senior Mortgage Consultant

Thanks Candace! I'm happy to have another AZ subscriber!

Oct 04, 2008 02:12 AM