15,000 dollar tax credit? Maybe. Rates steady…and low 5's for fix30.
Have you metChad?
FNMA 4.5% : up another 3bps today…so holding steady for the last 2 days. Bond friendly news of massive layoffs and job losses did not give any traction against the anticipated 67 billion in "bond supply" hitting the market next week. Fed Mortgage Backed Security purchase program report released today is showing 22.3B in MBS purchased between Jan 29 and Feb 4 for a total of approx $92B purchased since January 5th. This purchasing seems to be focused on supporting a "ceiling" of rates in the 5.5%-6% range as I mentioned a few days ago…
Initial Jobless claims…which notes the number of people filing for unemployment (first time) each week reached a 26 year high and came in at 626,000 filings estimated. Those continuing to receive unemployment benefits are counted at 4.79 million. The official "jobs" report comes out tomorrow. As inferred above: bad news for the job market is generally good news for rates…but I would love to see some good news even if it brings higher rates.
Perspective: RIGHT now we have some of the lowest rates EVER available to us…some of the BEST pricing on homes in our markets we have seen in 4-5 years…and in most of our markets: about NORMAL or just less than NORMAL employment levels. Additionally: Loans…REAL loans…not the "funny biz specials" or "stated" loans…are JUST AS available as they have been. It is an odd environment to be in. In a "Normal" environment: more people would be seeing this as the time to TAKE ACTION… Remember the Warren Buffet Quote: "…when people are greedy: get scared…and when people are scared: get greedy"…?
$15000 tax credit approved by the senate but not yet REAL: Republicans in the senate who were not successful in cutting pork from the stimulus package were able to at least negotiate for a tax credit to home buyers as part of the bill. The "cost" comes in at an estimated $19 billion and is going to be given to home buyers in amounts equal to 10% of the home purchase up to $15k according to the Associated Press. I would anticipate that we will see some form of this idea ultimately but there is still time for much amending to this bill and it is not "hatched" yet.
DOW: Actually UP 106 points today. Analysts are thinking that now may be the "bottom" for many stocks such as Caterpillar Equipment with excellent fundamentals and a very likely recovery. "Bargain hunters" are on the scene and providing support to some stocks. Rumors that Obama Administration would suspend the "mark to market" accounting rule (FASB 157) circulated today and added some optimism to the market as well.
DJIA 8,063.07 +106.41 NASDAQ 1,546.24 +31.19 SP500 845.85 +13.62
Have a great eve!
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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
