Lock. Lock. Lock. Did I mention that you should have your clients lock today? With Oil below $127, gold down more than $17 today and stocks only on a modest gain, it would sound like a great day for the bond market. Unless of course more bad media came out today on the 2 big Mac's today. Which Treasury Secretary Henry Paulson did today when he told congress that they needed to pass funding for them before it's too late. You know I have been occasionally called a doom and gloom guy (talking to you Steve), but even would I know better than to spew out something that doom worthy. Also making the news today is Wachovia Corp. which lost $8.86 billion in the second quarter and decided to exit the wholesale mortgage market and slash over 6,300 jobs. With the newly emphasized worry on Fannie and Freddie, bonds look like a bad investment to many today. There is much more on the plate today bringing it down, but the main point is that when rates go up, more and more clients lose the ability to qualify for a home. What may have just worked at 6.5% may not at 7%. It's a great time to buy, we just need to educate them and tell them to turn off the TV.
Karl Menzer
435-849-0212
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