inflation: Mortgage Market Guide as of Wednesday, November 21, 2007 - 11/21/07 04:30 AM
Volatility continues in the Bond Market.  Currently, bonds are up a whopping +38 basis points so we're enjoying this news.  As of today, we are offering 30-year fixed at 6.375% with NO points and we will advise to "float" your interest rate to see if further gains come our way. 
Yesterday, Mortgage Bonds opened lower, hovered on an support floor of support throughout the day before dropping sharply right before the market close.  Unfortunately, we heard of some lenders re-pricing early in the day, which is unusual in advance of the release of the Fed … (0 comments)

inflation: Mortgage Market Update as of Thursday, November 15th - 11/15/07 05:17 AM
ONE MORE WEEK TILL THANKSGIVING?!?!?!?!??  How this year is flying by!
I hope everyone is having a FANTASTIC day.  Yesterday's temperature was a beautiful 55'ish...and today is a cold, rainy, snowy mix at 30 degrees.  WELCOME TO MICHIGAN!
Mortgage Bonds are trading higher, currently at +19 basis points, after this morning's inflation report. The Consumer Price Index (CPI) reported that inflation is inline with expectations. However the Core CPI, which strips out food and energy, was reported at 2.2%--up from 2.1%.
Typically, higher inflation is a negative for Bonds. But in this case, Mortgage Bonds improved because Traders viewed the higher … (1 comments)

inflation: TGIF! Mortage Market Update as of Friday, November 9th - 11/09/07 04:32 AM
Surprise, surprise...more sub-prime mortgage related losses are hitting the financial sector this morning.  Stocks are trading lower and Bonds are trading slightly higher after Wachovia Corp announced a loss of $1.1 Billion in the value of their Collateralized Debt Obligations (CDO's).  CDO's are investments partly comprised of subprime mortgages, and as subprime mortgage default rates have risen, the values of these CDO's have fallen significantly. 
And because Stocks are again to the downside Bond prices are being supported as proceeds from sold Stocks get parked into Bonds.  Both the Dow and S&P 500 benchmark indices have just broken below their 200-day Moving Averages.  Unless … (1 comments)

inflation: Mortgage Market Update as of Friday, November 2nd - 11/02/07 02:28 AM
Another crisp Fall day here in Michigan!  I hope everyone had a fantastic Halloween and I hope everyone has scheduled an emergency dental appointment! :)
On the business front......
The best Jobs number in six months hit the wires this morning.  Non-farm payrolls were reported at 166,000 for the month of October.  This is more than double market expectations and previous revisions were negligible.  The unemployment rate held steady at 4.7%.  Stocks opened higher on the strong economic news and Bonds are started the day with some weakness, but looks like they've rebdounded.  Currently, mortgage bonds are up +9 basis points. 
With such … (0 comments)

inflation: Mortgage Bonds and Cedar Point's TOP THRILL DRAGSTER -- How are they similar? - 05/31/07 04:29 AM
Cedar Point's Top Thrill Dragster has a 420 feet (42 stories), 120 mph drop.  It is a TOTAL blast for anyone who is a roller coaster fanatic like myself.  But at least the Top Thrill Dragster stops.  Mortgage bonds continue their downward trend in pricing / interest rate increases.
Bonds are currently down -16 basis points so we expect rates to increase.  Yesterday, as we expected, the Fed Minutes from May 9 stated "nearly all participants viewed core inflation as remaining uncomfortably high," and "all participants agreed the risks around the anticipated moderation in inflation were to the upside."  Even though the … (1 comments)

inflation: Yesterday's Fed Meeting and What Else Is Effecting Bonds Today - 05/10/07 03:48 AM
Just as we mentioned in yesterday's Daily Update, we knew the Fed would not make any changes to the Fed Funds Rate following yesterday's meeting - and sure enough, the Fed voted to leave monetary policy "as is", with the Fed Funds Rate held steady at 5.25%. 
However, it was the tone of the Policy Statement that was in question...and indeed, although the statement was short, it was not so sweet for Bonds, which declined a bit following the release.  Why?  Because the market was looking for a little love from the Fed, particularly in regards to inflation.  Recent inflation and wage data has all been friendly, … (2 comments)

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