Yow! Still under 5%...bonds steady…dow recovery
Have you metChad?
I am on my way to Seattle for some special meetings so have just a few minutes to write this…I hope this message finds each of you well!
FNMA 4.5% : is down only about 3 bps today…thank you FED buying power! Investors looking for some real substance in the speech yesterday pulled money hand over fist from stocks and bonds leaving both negative when they didn't hear what they needed to.
DOW: Down over 300 points yesterday and currently up about 110 points…
DJIA 8,059.17 +110.08 NASDAQ 1,465.45 +24.59 SP500 819.04 +13.82
Inflation: I am finally seeing some analysts acknowledge the inflation threat that I have been wondering about over the last several weeks. If the "trillion dollar" solution proposed by B.O. works the way it should…we could see some rapid inflation. I am personally hoping that the money is well invested and we will see benefits outweigh the potential crippling inflation that may ensue. We will see. Josh Cormany has a great outlook on the inflation piece: if consumers seek to rebuild wealth by investing or saving vs. chasing goods and services the inflation monster and its intensity could be minimized. I am the eternal optimist so hope that the latest waves in the economy has taught enough of us to save and invest to make a difference and help with the recovery.
Obama's first press conference: Obama looking to provide greater transparency of the office, greater accountability to his cabinet among other things promised today. Some are saying that his promises including the largest stimulus package ever are fueling "hope" and causing stock market to go up today… With money going into stocks: it traditionally flows OUT of mortgage backed securities causing mortgage rates to go up. News: if stock market flourishes among the new promise: mortgage rates will go up. If the new plan causes rampant inflation: rates will go up as investors pull from the US markets in general. SO: NOW is the best time to purchase or refinance…sounds like a broken record right?
Have a great day today!
Chad
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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
