economic news: The Double Dip? Is it Here? - 08/05/11 08:00 AM
Today's news was a breath of fresh air.  Last night every talk show and news show talked about yesterday's market collapse.  Most everyone last night believe that there's an inevitable double dip that will take our economy down again. 
Yesterday it was reported that one if 4 people can't afford a $2,000 repair on their car.  One in 8 can't afford a $1,000 repair on their car. 
Today's news was relieving (for the moment) because...
v  117,000 new N0n-farm Payrolls in July. June was revised up to 46,000 from 18,000. Expectations were officially for 85,000, although the panic had investors … (4 comments)

economic news: Don't Trip over dollars to save a few pennies..... - 08/25/09 01:26 AM
Thirty year mortgage rates have been moving lower over the past week and are currently at about 5.0% + or - depending on all the loan variables.  Many of you know that over the past month rates moved as low as below 5% for 30 year fixed mortgage loans and as high as just under 6.0%.
After a few days of pricing pressure, Mortgage Bonds are trading near "oversold" conditions, which could make prices ripe for a reversal higher.  If you couple that with the strong underlying support, it gives reason to be optimistic that the rates will mover lower in … (11 comments)

economic news: 276,000 new homes per week going into foreclosure - 07/18/09 05:22 AM
Pretty amazing stats if you ask me.  I was on a seminar with a well known speaker yesterday in the mortgage industry.  He was whipping out some facts.  We spoke a bit about how by 2010 less than 7% of the mortgage market should be refinances.  This means that there will be a huge shift in the way that we do business.  But what I found most interesting was the fact that foreclosures are still coming fast and furiously.  Just amazing.  Want to have your take on it and know your thoughts.
Not a lot to say...just looking for some feedback … (8 comments)

economic news: How the Government Blew Up the Recovery from the Recession...and rates as well! - 06/11/09 01:35 AM
Had a great conversation with a guru in the world of mortgage lending.  This individual is a hawk within our mortgage industry. 
We discussed a number of things that today that related to the mortgage industry.  When I asked about the recent implosion about the mortgage industry he brought up some interesting dialogue.  A few incredibly interesting points.  First, the point that I knew....
1)  THE REAL ESTATE AND MORTGAGE INDUSTRY HAS BEEN THE LEAD EACH AND EVERY ECONOMY OUT OF IT'S RECESSION.  Every recession ended with a real estate boom.  Sometimes it's been both the real estate boom or it … (10 comments)

economic news: Tracking Mortgage Backed Securities Movement Recently.... - 06/09/09 12:59 AM
The enclosed chart includes 4.0 and 4.5 MBS (mortgage backed securities) closing prices for the past 6-weeks. I don't recall ever seeing market deterioration of this magnitude in such a short period of time.  It's just amazing as there's really nothing to support this movement.  Needless to say, the ONLY THING that's been helping our economy is the mortgage industry.  NOW....the feds and free market are stopping that.  Do you know that the end of every recession was led by the surge of the mortgage and, invariably, real estate industry?  The government's going to have to act quickly otherwise we'll quickly … (2 comments)

economic news: Today's Market Commentary - 05/20/09 01:28 AM
Yesterday, mortgages tightened slightly as continued demand from the Fed and steady purchases from money managers in higher coupons was enough to counter the supply brought to market from originators.  Mortgages tightened (outperformed) versus swaps by 1-2/32nds by 3:00pm.  Originator selling for the day was ~$3.5bln, which is just over the $3.2bln daily average seen this month.  At 5:00pm, the FNCL 4.0 was +2.5/32 at 99-29+ and the FNCI 4.0 was +4.0/32 at 101-12+.  
The economic releases yesterday included the housing starts data for April.  The report showed that new housing starts fell by 13% since March, which is down to an … (1 comments)

economic news: Economic Data - 04/01/09 02:47 AM
Economic data should steal some headlines away from the G-20 pre-meetings today and reports from the Obama camp that bankruptcy may be the most likely option for some carmakers. The ISM Manufacturing, Pending home sales, and Vehicle sales are expected to show mild gains while ADP employment change is expected to post another massive loss of 663,000. 
 Home prices dropped 19% in January according to the S&P/Case Shiller index.  A glut of unsold properties may keep prices low, shrinking household wealth and damping spending.  Sales of new and previously-owned homes rose in February, indicating the housing slump may ease as policy efforts to unclog credit and … (2 comments)

economic news: Today's Market Commentary - 02/17/09 12:48 AM
Friday, the Fed continued to be the only material buyer although it was their lightest day of buying all week.  Despite flows heavily skewed to the sell side, mortgages were 13 to 14/32nds tighter (better performing) at 1PM.  At the early close (2pm), the 30yr 4.0 Mar closed -19/32 (99-01), the 30yr 4.5 Mar was -13/32 (100-23+), and the 15yr 4.0 Feb was -12.5/32 (100-27+).  30yr Treasuries continued to loose ground through the holiday shortened day, leading the way for shorter-dated treasuries.  The tightening of mortgages despite heavy supply can be tied to the losses in Treasuries, as 30yr Tsy's were … (0 comments)

economic news: Today's Market Commentary - 02/11/09 01:49 AM
Yesterday, mortgages opened another 6 to 8/32 tighter (stronger) to swaps off of overseas and Fed buying.  Spreads widened after heavy origination coupled with profit taking at higher dollar prices.  The Fed offset that by adding billions to its portfolio throughout the day, and dollar rolls fared better, particularly the FN 5%, which spiked 2.25/32 higher.  Mortgages closed on spread to 4/32 wider to swaps.  While overall activity felt lighter than the last couple of months, we saw continued price improvement in High Balance Loan (HBL) securities.  HBL FN 4.5s, 5s, and 5.5s traded -47,-43 and -40 behind TBA.  Last week, pricing of … (3 comments)

economic news: Today's Market Commentary - - - - 01/13/09 03:09 AM
On Monday, mortgages leaked 6 to 8 ticks wider to swaps - a continuation of their recent widening trend. Origination was high at 2.5 bln to 3.0 bln but was met by good buying, mostly from the Fed. The market might be getting a little concerned with the temporary nature of Fed buying, which has only been promised for the first two quarters of this year. Speculation that the market may be overbought could be weakening support for mortgages at these prices. At the end of the day the FNCI 4.0 was -1/32 at 102-1 and the FNCL 4.5 was -2/32 at 102-06.
The headlines today will focus on the most recent … (3 comments)

economic news: Government is finally Buying up Mortgage Backed Securities. Rates stay low. - 01/08/09 01:09 AM
Mortgages saw good two-way flows yesterday as the Fed began buying late morning and continued purchasing throughout the session, which helped to offset the heavy real money and steady origination selling.  Note that the rates would be skyrocketing if it weren't for the Fed coming into buy MBSs or Mortgage Backed Securities. 
Originators continued hedging in FNCL 4.5% and 4% and GNMA 4.5% and 5% out to March settle.  30yr MBS closed relatively flat on the day, anywhere from 2/32s wider to tighter depending on the coupon.  At 3pm, FNMA 30yr MBS prices for January were the following;  FNCL 4.0% at 101-07 (+06/32), … (3 comments)

economic news: Rates Going Up over the Holidays???? - 12/22/08 03:49 PM
Well, the Holidays are officially upon us.  There are so many people who have already left for the holidays.  We're seeing what happens during this time each year.  Rates generally go up.  That is exactly what has happened during this season.
Last week the Fed announced that it was going to buy up most of the mortgage backed securities.  When mortgage backed securities or MBS's are bought up, rates drop down.  Most people think that when the stock market goes down rates go down or even inversely when the stock market goes up.....rates go down.  The reality is that there often times … (10 comments)

economic news: Today's Market News....for mortgage lenders!!!! - 12/18/08 01:00 AM
Mortgage prices shot out of a canon yesterday morning as prices surged to all time highs.   This was so cool....but no sooner did it take off than it gave it all back and then some.  However, a heavy dose of origination sent prices downward as buyers quickly became sellers.  Liquidity in the lower coupons was horrible as pricing became extremely choppy.  We lenders had a rough morning as prices were moving faster than rate sheets could be set.  According to Fannie.....To make matters worse, the screens we use to price were grossly inaccurate at times.   It was definitely a volatile time in my office.  And I was had a … (2 comments)

economic news: See What I found out from the Fed.... - 12/17/08 04:45 AM
This is great...according to market reports the Fed doesn't think that the Fed lowering of the Fed lending rate is sufficient to stimulate the economy.  If you think about it.  If the Fed lending rate drops to -1.0.... in other words, the Government is paying to borrow money, it really doesn't matter if banks won't lend you money.  I heard on the radio that in order to truly stimulate the economy we need to jump start the mortgage lending process and the fed was going to take action to overstimulate MORTGAGE RATES.  This is huge for our business and the economy … (6 comments)

economic news: Today's Stunning Economic News....Great for Rates - 12/16/08 08:41 AM
Good afternoon,
Fed cut the target Fed Funds rate from 1.00% to a range between 0.00% and 0.25%. The 75 basis point cut was larger than the consensus forecast for a 50 basis point cut. This marked the first time that the Fed has targeted a range rather than a fixed value, reflecting that it is more difficult for the Fed to precisely target a rate in the current market environment. The Fed's statement confirmed that economic conditions have worsened recently and suggested that rates will remain at extremely low levels for an extended period of time. Also notable, the Fed … (7 comments)

economic news: What stirred our market today? - 11/25/08 02:44 PM
The Fed is making it clear that they think Mortgage Rates to consumers are too high relative to Treasures. The last time we had rates (Treasuries & MBS) this low was back in 2003-2004, when the 10Yr Treasury bottomed out (in Yield) at 3.11 on 6/13/03, and the Fannie Mae 30y 30 day commitment (FNCR3030 on Bloomberg) bottomed out @ 4.66 for a spread of 1.55.  Currently this spread is 2.53, which is 98BP wider then it was in 2003.  Many things have changed over the last few years, with the current economic and housing situation looking worse then they did … (5 comments)

economic news: Mortgage Rates are Dropping - - - Fannie Freddie fallout! - 09/08/08 02:01 AM
Mortgage Backed Securities are up 94 basis points right now.  That means we should see rates drop another .125 to .25% today.  It's horrible that Fannie and Freddie mismanaged themselves so much that the government needed to step in over the weekend to run them.  Evidently this was done so that the Japanese and Chinese would still consider Mortgage Backed Securities good investments.  Let's see if this is enough stimulus to jump start the real estate market.  In any event rates have dropped for today.  Let's see what the full impact of this move is.

economic news: House Hopper May Suffer Under New Tax Rules!!!! - 09/07/08 04:11 PM
Life is getting tougher for some people who own more than one home.
Part of the housing-stimulus package signed into law last week by President George W. Bush could reduce -- though not eliminate -- the appeal of a tax-saving strategy used by wealthy home-hoppers.
While the new law won't affect the vast majority of the nation's homeowners, it will likely affect some people planning to sell their primary residence, claim the full home-sale exclusion to pay little or no capital-gains taxes -- and then move to a second or third home they've owned for some time, convert it into their … (7 comments)

economic news: This Past Week's Economic Summary...interpreted my your's truly. - 08/17/08 01:11 PM

economic news: Foreclosures up 121%, but ECONOMIC REVISIONS suggest ecopnomic stabilization....Go Figure!!!!!!! - 07/25/08 03:09 PM
U.S. new home sales fell marginally in June but the pace was much higher than expected due to +50k of revisions over the past three months. Economists were surprised by the report and said it may be a tentative sign of stabilization.
Some Cheif Strategists suggest that it "paints a brighter picture (than previously portrayed).  We'll see.....I can't believe that this is more than just a blip.  We'll see....time will tell....the proof will be in following economic data results.
Sales fell 0.6% to an annual pace of 530k sales in June's U.S. Census Bureau report on Friday. April's new home sales … (9 comments)

Larry Bettag, Vice-President of National Production (Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759  Cherry Creek Mortgage NMLS #: 3001) Ambassador large

Larry Bettag

Vice-President of National Production

Saint Charles, IL

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Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001

Address: 40W310 LaFox Road, Saint Charles, IL, 60175

Office: (630) 524-9677

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