rates: Treasuries Gain After New Home Sales Decline to a 12-Year Low - 12/28/07 03:36 PM
Treasuries rose the most in more than two weeks and headed for the best annual returns since 2002 after a government report showed sales of new homes in the U.S. declined to a 12-year low last month. Ten-year note yields fell to the lowest level in a week after the Commerce Department said sales dropped 9 percent.
The three-month London interbank offered rate, or Libor, fell 10 basis points to a 22-month low of 4.73 percent
Riots in Pakistan after the assassination of former prime minister Benazir Bhutto added to investors' desire for the safety of government debt.  Unfortunately, global uncertainty and unrest … (5 comments)

rates: Treasuries Gain After New Home Sales Fall to a 12-Year Low - 12/28/07 02:02 AM
Treasuries rose the most in more than two weeks and headed for the best year since 2002 after a government report showed sales of new homes in the U.S. declined to a 12-year low last month. Ten-year note yields fell to the lowest level in a week as the housing slump prompted traders to raise bets the Federal Reserve will cut borrowing costs next month. Futures show the odds of an interest-rate cut by the Fed next month are 88 percent! ... Yippee! :-) ~Kris Krajecki Mortgage Specialist Fox Valley Mortgage 630-347-6321 … (1 comments)

rates: Weekend Surge Fails to Salvage U.S. Holiday Sales - 12/26/07 02:25 AM
Last-minute purchases over the pre- Christmas weekend failed to salvage what may be the slowest- growing holiday spending season in five years. Sales at stores open more than 12 months rose 2.8 percent last week...Retailers began cutting prices today to clear out merchandise left over from the weekend spending surge Macy's Inc.'s Bloomingdale's offered as much as 75 percent off men's clothes, and Lord & Taylor advertised half-off prices for children's coats today. I say look for another rate cut at the end of January! :-) … (0 comments)

rates: Treasuries Fall as Rising U.S. Stocks Reduce Appeal of Debt - 12/24/07 01:57 AM
Treasury notes fell as U.S. stock indexes gained, reducing investor interest in the safety of government debt. Equities rose as Merrill Lynch & Co. sold most of its commercial finance business to General Electric Co. Treasuries are poised for their best year since 2002 on expectations the Federal Reserve will keep cutting interest rates next year to stop a housing meltdown from triggering a recession. The Fed cut its target rate for overnight loans between banks by 1 percentage point this year to 4.25 percent. U.S. and European central banks also added money to the financial system to try to revive … (0 comments)

rates: Fed endorses rules to curb shady lending - 12/19/07 05:14 AM
The Fed, which has regulatory powers over the nation's banking system, is proposing:
Restricting lenders from penalizing certain subprime borrowers - those with tarnished credit or low incomes - who pay off their loans early. The restriction would apply to loans that meet certain conditions, including that the penalty expire at least 60 days before any possible payment increase. Forcing lenders to make sure that subprime borrowers set aside money to pay for taxes and insurance. Barring lenders from making loans when they don't have proof of a borrower's income. Prohibiting lenders from engaging in a pattern or practice of lending without … (0 comments)

rates: Treasuries Rise on Concern Financial Market Turmoil to Persist - 12/19/07 12:49 AM
U.S. 10-year Treasuries gained a third day on speculation central banks will fail to restore confidence to financial markets and keep economic growth from slowing. Government debt also rose as Morgan Stanley, the second- biggest U.S. securities firm, reported a fourth-quarter loss after a $9.4 billion writedown on mortgage-related investments. The Federal Reserve will announce at 10 a.m. New York time the result of an auction of $20 billion of one-month funds intended to revive credit markets after subprime losses made banks wary of lending to each other. The European Central Bank injected an unprecedented $500 billion into the banking system … (0 comments)

rates: Treasuries Rise Most in Three Years as Fed Rate Cuts Disappoint - 12/11/07 07:36 AM
Treasuries rose the most in more than three years on concern that the Federal Reserve's quarter- point reductions in borrowing costs won't be enough to avoid the risk of recession. The rally pushed yields on two-year notes, more sensitive to expectations of further rate cuts than longer-maturity debt, back below 3 percent. The central bank lowered its target for overnight loans between banks to 4.25 percent and the rate it charges banks for direct loans to 4.75 percent, disheartening investors expecting a bigger reduction in the discount rate.
The FED meets again on January 30th.

rates: Treasuries Rise as Fed Policy Makers Say U.S. Economy Slowing - 12/03/07 07:44 AM
Treasuries rose as Federal Reserve policy makers said the economy is slowing, increasing speculation that the central bank will cut borrowing costs a half-percentage point next week. The rally pushed two-year note yields to within 3 basis points of the lowest level since 2004 as short-term lending rates increased for a 14th day and stocks fell.
Fed funds futures on the Chicago Board of Trade show traders raised bets that the central bank will reduce its 4.5 percent target rate for overnight lending between banks a half- percentage point at its next meeting Dec. 11.
U.S. Treasury Secretary Henry Paulson said at a … (2 comments)

rates: U.S. Notes Post Best Monthly Gains Since 1995 on Credit Losses - 12/01/07 03:02 AM
Treasuries had their best month in 12 years as concern over banks' willingness to lend drove investors to seek refuge in the relative safety of U.S. government debt. An index of Treasury securities returned 3.2 percent in November, the highest since 1995, as the rate banks charge each other for borrowing in dollars for one month rose the most since August.
 Federal Reserve Chairman Ben S. Bernanke indicated the central bank may cut lending costs after a report next week forecast to show employers added the fewest jobs since June.
It looks like Santa may bring one more rate cut this year!!

rates: Treasuries Fall After Bernanke Says Fed Will Act to Avoid a Recession - 11/30/07 02:53 AM
Treasuries fell and bill yields rose as Federal Reserve Chairman Ben S. Bernanke indicated the central bank will do whatever it takes to keep the economy out of a recession. Yields on three-month bills increased the most in more than two weeks on reduced demand for the safety of short-term government securities. A plan Treasury Secretary Henry Paulson is negotiating with the biggest banks to limit foreclosures may reduce concern over subprime mortgage losses, which has led U.S. debt to the best monthly returns in 12 years.
Rising gasoline prices, a housing slump and reduced access to credit seems to be … (0 comments)

rates: Treasuries Fall With Investment in Citigroup - 11/27/07 02:17 AM
Treasuries fell as Abu Dhabi agreed to invest $7.5 billion in Citigroup Inc., boosting stocks and easing demand for the relative safety of government debt. Investors sold bonds as traders speculated that the cash infusion will help the biggest U.S. bank by assets replenish capital after writedowns related to subprime mortgage losses. The pledge from the Mideast emirate calmed investors who yesterday drove two-year note yields to the lowest level since December 2004.
The Treasury will offer $20 billion of two-year notes tomorrow and $13 billion of five-year securities Nov. 29.
Bets are on that FED will lower its target rate … (0 comments)

rates: GMAC Stated Income Changes... - 11/27/07 02:07 AM
It's STILL getting a bit tougher to get some of those loans done!
Just announced this morning...
Summary:Homecomings Financial announces changes to Stated Income documentation types and the Payment Option program. These changes will be effective on December 3, 2007.All Programs
Stated Income and Stated Income/Stated Asset documentation types are only permitted for Self-employed borrowers. Payment Option
Full, Lite, One Paystub and Fast documentation types: Primary Residence Single Family Residence 1-2 unit, Purchase and Rate/Term: A loan amount of $2MM requires a minimum credit score of 720 instead of 700 Non-Owner Occupied: Single Family Residence 1-2 unit, Cash-out refinance: Cash-out limits for LTVs … (0 comments)

rates: Ten-Year Yield Falls Below 4% - 11/21/07 01:03 AM
Well we should all be in the 5's NOW!!
Treasuries surged, sending 10-year note yields below 4 percent for the first time in more than two years!!
Bonds rose as U.S. stocks fell and oil rose to within 71 cents of $100 a barrel. The spread, or difference in yield, between two- and 10-year notes widened to the most since early 2005 and the Federal Reserve may have to lower interest rates again even as inflation accelerates.
A steepening of the so-called yield curve suggests investors are buying shorter-maturity debt in anticipation of interest-rate reductions by the Federal Reserve.
Three-month U.S. Treasury bill yields have dropped … (1 comments)

rates: Dont forget the 2 day workweek!! - 11/19/07 01:15 PM
What little economic news we'll have during this Thanksgiving Holiday shortened week takes place this Tuesday and Wednesday...and the market is scheduled to close early on Wednesday and Friday with a full-day close on Thursday.
The most interesting news of note for the coming week will be the latest housing data, coming with Tuesday's release of the Housing Starts and Building Permits report. Also on Tuesday, the Fed "unplugged"...the Minutes from the last Fed meeting will be released, providing the commentary and discussion between both voting and non-voting members. This may provide additional insight into the Federal Reserve's recent decision to cut … (1 comments)

rates: Recession Threat Means More Cuts! - 11/19/07 01:52 AM
The headline in the financial futures market these days says Federal Reserve Chairman Ben S. Bernanke is withholding some vital information: The economy is so bad the central bank will have to lower interest rates at least three-quarters of a percentage point to avoid a recession. Bernanke's two rate cuts since September failed to reassure the bond market, where volatility has risen four of the past five weeks! While the record low dollar and the fastest inflation in 14 months give policy makers reasons to keep the target rate for overnight loans between banks at 4.5 percent, traders expect 3.75 percent … (0 comments)

rates: Treasuries Rise This Morning on New Home Construction and Deepening Subprime Losses - 11/19/07 01:48 AM
Treasuries rose as a Goldman Sachs Group Inc. analyst said Citigroup Inc. may incur an additional writedown of $4 billion, suggesting that losses related to delinquent subprime mortgages will deepen. U.S., European and Asian equities retreated on increased concern that a slumping housing market will slow the global economy. A report today is expected to show that an index of homebuilder confidence probably fell to a record low this month.
Two-year note yields fell 2 basis points to 3.33 percent after falling to 3.28 percent on Nov. 16, the lowest since February 2005. Fed fund futures indicated a 74 percent chance that the … (1 comments)

rates: Treasuries Little Changed as Fed Say Rate Cuts Are Less Likely - 11/16/07 01:38 AM
Treasuries were little changed as Federal Reserve officials suggested that the central bank won't be as quick to reduce borrowing costs as traders anticipated. Yields rose earlier from the lowest since 2005 after Fed Governor Randall Kroszner said an economic ``rough patch'' in coming months won't be enough to warrant additional rate cuts. Officials are reluctant to lower borrowing costs further.
Policy makers have lowered borrowing costs by 75 basis points to 4.5 percent since September.
Treasury two-year notes are headed for a fifth weekly gain in the longest rally in eight months. Yields of the notes are down 10 basis … (0 comments)

rates: Treasuries Fall as Boost in Retail Sales Eases Growth Concern - 11/14/07 12:50 AM
Treasuries fell after a government report showed U.S. retail sales rose last month more than economists forecast, suggesting that the U.S. economy is weathering the worst housing slump in 16 years. The data encouraged traders to reduce bets that the Federal Reserve will cut borrowing costs for a third time this year. Treasury notes rose last week to their highest levels since 2005 on speculation over declining home prices and record foreclosures on U.S. residential mortgages. Yields of two-year notes have fallen more than 40 basis points this month as investors sought the safety of government debt. Looks like rates are … (1 comments)

rates: Treasuries Fall as U.S. Stocks Rise - 11/13/07 12:51 AM
Treasuries fell for the first time in a week as an increase in U.S. stocks reduced demand for the safety of government debt. Stocks are up, which is strange since stocks started the day Friday being down 200 points?! Yields of two-year notes, which had benefited as investors sought shorter-term securities, rose more than yields of 10-year debt. The spread between the securities is narrowing. Right now, a 2 or 3 year ARM has a much more attractive rate than a 30 year fixed. I just hope that we don't get into the kind of trouble that we did before when … (1 comments)

rates: Treasuries Rise as Bernanke Says Growth to Slow - 11/08/07 02:14 AM
Treasuries rose as Federal Reserve Chairman Ben S. Bernanke told Congress he expects economic growth to ``slow noticeably'' this quarter. The difference in yields between two- and 10-year notes increased to the widest since March 2005. The bets are that the Fed will cut borrowing costs at its meeting next month.
Interest-rate futures on the Chicago Board of Trade show the Fed will lower its target rate for overnight lending between banks an additional quarter-percentage point to 4.25 percent on Dec. 11.
Merry Christmas!


Kris Krajecki

Mortgage Broker Huntley, IL

Huntley, IL

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