Hey I am on the radio with a panel of "experts" tomorrow at 9am! You can listen by clicking <here> or going to: http://kmmsam.com/onair_page.php?id=12
and clicking on the "listen live" link at the top of the page.
Still Trading in 5% range
Have you metChad?
Hey there! I have been on a "NEWS FAST" for the last few days…
I wanted to share with all on my list that I appreciate your feedback and hope that you are able to use this valuable tool to enrich your understanding of what is really happening in the real estate and financial world. I have found that the greatest asset available to professionals in today's market is credibility. When your clients know that you have a deeper understanding of the marketplace and allow that to fuel the passion you feel for what you do: they tend to stay with you.
Not just because they can "believe" in you...but because you are able to do a better job advising them through one of the most important decisions they can make.
FNMA 5.0% : Down 22 bps but rates should hold tomorrow in the 5% range for the 30 year fixed product. A large amount of bonds are up for auction this week...so with added supply investors anticipate a continued weakening of the bond market for the short term.
DOW: Up 38 bps with the friendly home sales news among other factors cited in articles I have reviewed for you today.
Good news: 62% of Americans polled by USA today are feeling more hopeful for the future.
Interesting mix of news over these last few days:
Housing "starts" are the LOWEST EVER...indicating that construction is down. Lower housing starts actually help us absorb some of the inventory of existing homes. In-fact: inventory nationwide is down just over 11%...which is GREAT! To support this: EXISTING HOME SALES were 6.5% better than expected for December 2008. Even though YTD nationwide sales were down just over 9% December's sales were only down 3.5% over last year. BARGAIN hunters have been at it...and hopefully you are out there with them! REMEMBER: when we see more buyers vs. inventory the market stabilizes! Purchase activity from the recent drop in interest rates should show results in the purchase market this month and next.
Oil is back up over 45 bucks/barrel. Whee! Summer driving season to come...
Trillion dollar perspective: we anticipate dumping almost a TRILLION dollars into our economy over the next few years. If we had a stack of ONE THOUSAND DOLLAR BILLS four INCHES high: that would be a MILLION dollars...a STACK measuring JUST OVER SIXTY-THREE MILES (yes miles!) HIGH would equal one TRILLION dollars. Yow.
Stimulus Insight: looking at a part of the package outlining use of over $355 BILLION (about a 22.3 mile stack!) only $136 billion would be spent by October 2010. Of just over $100 billion earmarked for infrastructure spending: only $26 billion would be spent in 2009. This comes as a bit of a disappointment since the package has been marketed as a "quick" government intervention providing a "boon" to the economy that we can not afford to waste another minute "thinking it over"… Remember: when the feds buy ASSETS to "sell" down the road…it is different from this type of spending. Many analysts feel that this "Keynesian" approach to stimulating the economy does not help the GDP…which technically measures whether or not we are in a recession or depression.
Hmm…please hope with me for the best. Take care of your family, your clients and yourselves…if not in that order and have a great evening!
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
