Mortgage-Backed Securities markets have showed little reaction to the economic data released this morning. January Retail Sales rose 1.0% from December, well above the consensus for a decline of -0.3%. It was the first increase in six months. Economists believe that more consumers postponed their purchases until after Christmas this year, and they don't see the strong data as the start of a new trend. Jobless Claims came in a little higher than expected. Continuing Jobless Claims rose to a new record high. No more economic data will be released today. A 30-yr Treasury auction will take place at 1:00 et.
The House and the Senate agreed yesterday on a compromise $789 billion fiscal stimulus plan. It is expected to pass before the end of the week. The Obama administration estimates that 3.5 million jobs will be added or saved by the plan. The Senate version contained a provision for a $15,000 homebuyer tax credit, but that was dropped in the final version. Instead, the $7,500 first time homebuyer tax credit will no longer need to be repaid.
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop
There doesn't see to be any concrete reason for the markets to move significantly.
Feb 12, 2009 02:50 AM
eLoanRates.org - Thornton, CO
Still, the $7,500 not having to be repaid is pretty big! I'm still hoping for a buydown of mortage rates to the 4.5% range.
Feb 12, 2009 03:27 AM
Chase International South Tahoe Realty - South Lake Tahoe, CA
Premier Home Mortgage - Winter Haven, FL
Wow!! I am just learning this about the tax credit not need to be repaid. I have a borrower now who could use these funds for downpayment. Great Blog!
Feb 13, 2009 02:13 AM
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