Happy New Year 2009!
What a great way to start the year, with mortgage interest rates still right at 50-year lows and Mortgage-Backed Securities in demand with announced purchases just starting and an announced $500 billion still to come throughout the next weeks and months. This is on top of the $200B they are using to invest in Commercial Loan Paper that will improve SBA loans. As we are all in goal setting mode, be bullish, knowing that financing is available and at rates that won’t hold you back! An aspect of the Signet Mission Statement that helps us set our goals is a simple philosophy: “We want you, your family and friends to have the best financing experience of your life.” Remember to make each of your goals SMART - we look forward to seeing Tina succeed! As a refresher of what makes goals SMART – they are:
- S: Specific (focus on a desired result)
- M: Measurable (and keep that measurement visible)
- A: Agreed (commit yourself to someone else that this goal will be accomplished)
- R: Realistic (reachable, but make it a stretch)
- T: Time-bound (by what date will it be measured and done?)
The low-volume short-trading weeks are now done and rates slipped only about an 1/8th. The uptick in the stock market at the end of the year continues on today and MBS are trading higher as well. Remember that MBS trading better also means better/lower rates. I can’t emphasize enough the magnitude of impact from the Fed buying MBS. It started this morning and we have seen a nice move because of it. The Fed announced earlier this morning that they are going to be publishing each Thursday the results of their purchases to date. We’ll keep our eye on it and let you know how it is going. This week we will be seeing the Jobs report out on Friday with December results. Last month we saw over a half million jobs reported ended. Sadly for the economy and for these families, this was the highest month on record. We are expecting a 475k loss for December at this point. Unfortunate news like this is another indication that inflation won’t be rearing its ugly head anytime soon and is favorable to MBS.
The announcement by the SEC last week that the mark-to-market accounting standard won’t be entirely set aside is not a surprise. They did say they will be making improvements to this harsh rule and we look forward to seeing that. If you watched last week’s video, you know that the start of the mortgage implosion has its roots in FAS 157 mark-to-market accounting. If you didn’t get to see the video or would like to receive our write-up on that issue, please send me a quick email.
What does all of this mean to you, your friends and clients? Rates are now better than in years. Funds are more available and the timing is right. Signet Mortgage is ready to help you put deals together.
We’ll keep you posted and you keep helping people reach their dreams. Make it a great week and a great year! – Dave
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