economic news: Today's Market Commentary - 01/14/08 01:58 AM
Still benefitting from perceived economic softness and echoes of Fed Chairman Bernanke's words, bond prices rose on Friday and expectations for Fed easing soared. While the 11-14bp drop in short and intermediate term Treasury yields was big news, the decline in Fed Funds futures' yields was even more impressive and surprising. This morning, Treasuries are giving up some of the ground gained on Friday but Fed Funds futures continue moving lower in yield. The Fed Funds futures' February contract is now trading at 3.64%, 61bp below the current target rate. The May contract is trading at 3%, 125bp lower than the … (0 comments)

economic news: Today's Market Analysis - 01/10/08 12:49 AM
Yields rose a few basis points on Wednesday as the bond market took a break from its recent rallies. Stocks, especially financials, had another wild ride, falling sharply throughout the day before being rescued just before the close. There were no economic reports released. St. Louis Fed President Poole, a non-voter on the FOMC who is about to retire, spoke quite dovishly about monetary policy. He said, "Stable inflation expectations give the Federal Reserve a lot of room for maneuver. If evidence suggests that substantial policy easing is appropriate, I don't think we're going to face a risk of adverse inflation … (2 comments)

economic news: Year End Summary....pretty crazy no matter how you slice it!!! - 01/02/08 03:37 AM
1. After several twists and turns, the story that we laid out a year ago has indeed played out -- a persistent downturn in the housing market that persuaded the FOMC to ease policy aggressively in order to reduce the risk of a sharp economic downturn.  We believe that this story has further to go in 2008.  So our monetary policy call is considerably more aggressive than the consensus, with a 3% terminal funds rate.  Our best guess is that a proactive Fed will be able to keep GDP growth from going negative (though it's a close call, especially in H1).
2. Why does the Fed need … (2 comments)

economic news: Today's Market Commentary - 01/02/08 03:16 AM
Today's Market CommentaryAs stock prices fell, bond prices rose on Friday to close the year on a strong note. It was the third straight day of gains. The only economic news, existing home sales, unexpectedly rising and demonstrating stability with sales being virtually unchanged for the past three months even as new home sales have continued to decline. The number of existing home sales dwarfs new home sales by a 7:1 to 8:1 ratio. Trading was quiet and thin on Monday and closed early. This morning, the bond market starts the year with ISM's Manufacturing index.  Friday will produce the December … (0 comments)

economic news: Today's Market News...really ain't that all new - 12/13/07 01:43 AM
Today's Market CommentaryThe past 48 hours have been among the most confusing in years as the Fed, by delaying its announcement of its liquidity facility for 18 hours after the FOMC meeting, created wild market swings and added to concerns that they are behind the curve. Bond prices plunged on Wednesday, sending the two-year's yield up 21bp and the ten-year up 10bp, almost completely erasing Tuesday's equally sharp rally in bonds which followed the FOMC meeting. In the 24 hours following the FOMC's meeting, the two-year traversed a 35bp range, traveling a total of 55bp overall. Stocks soared initially on Wednesday, … (1 comments)

economic news: What's caused the rebound in our mortgage markets today? - 12/12/07 06:01 AM
Stock markets were disappointed in the Fed's Tuesday policy decision, mainly that the Discount rate (the rate the Fed lends to banks) wasn't trimmed by 0.5 percentage point. The takeaway was that the cut was insufficient given the worry over further damage to the financial sector. The gains in bonds were flight to safety.
Yet, today, the Fed joined four other central banks in announcing plans to thaw the credit freeze that threatens economic growth. The Fed said it would lend $40 billion, perhaps more, at rates below the Discount rate but accepting the same collateral.
European Central Bank, Bank of England, … (0 comments)

economic news: Fed Makes it's Move....Merry Christmas - 12/11/07 05:26 AM
Borrowers Get Year-End Gift from Fed The Federal Reserve lowered interest rates today for the third straight meeting of the FOMC. What does this mean? Well, if you're looking to capture the best home loan rates, you need to act now. For those with an application already in process, you should probably lock your rate as soon as possible. And, for anyone who has yet to begin a loan application, what are you waiting for?
Rate Hikes on the HorizonDespite this latest cut from the Fed, rates for many borrowers could actually increase soon. Why? Because Fannie Mae and Freddie Mac have … (0 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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