Market Insight
Have you MetChad?
NOTE: I WILL BE TRAVELLING THROUGH NEXT WEEK AND MAY NOT GET MI's
together as my access to internet will be limited. I have some medical
tests in SLC but will preclude that with a few days at Disneyland with my four
beautiful children. My partner Kerensa Robinson will handle all new referrals and files in process during my absence.
together as my access to internet will be limited. I have some medical
tests in SLC but will preclude that with a few days at Disneyland with my four
beautiful children. My partner Kerensa Robinson will handle all new referrals and files in process during my absence.
Have a great week!
FNMA 4.5% DOWN 12 bps today...Rates may slightly go up tomorrow depending on early session action. (Were at 5%-ish on the 30 year today.)
WE are all interested in the next few weeks. Not only are there record dollar amounts of t-note auctions: but also some important legislation coming up. I mentioned the lift of the "mark to market" requirement yesterday which is a possibility. Also on the "board" is the possibility to "reintroduce" the "uptick" rule to the US stock market. The "uptick" rule lessens the volatility in the market by making "short selling" potentially less profitable. I have mentioned the uptick rule and short selling in prior MI editions...so I am placing links below for your perusal.
<click for Uptick rule info>
<click for "Short Selling" info>
<click for Uptick rule info>
<click for "Short Selling" info>
Citibank noted that they are expecting this to be a profitable quarter! This news along with the FASB 157 suspension possibility renewed some confidence in financial stocks today...which led the way for the DOW to have a great UP in points as the session ended.
DOW UP 379 points on the day. WOW. We were due for a bounce...but analysts are hoping it is something more than this. Remember: there is MUCH in the way of FUNDS that are literally sitting on the sidelines and waiting to be re-invested.
Let's hope that new interest in the stock market with the changes mentioned above does not fully deteriorate pricing on mortgage backed securities. We are counting on continued investment in those to keep the rates low.
Let's hope that new interest in the stock market with the changes mentioned above does not fully deteriorate pricing on mortgage backed securities. We are counting on continued investment in those to keep the rates low.
Perspective: "organic" investment in Mortgage Backed Securities...is augmenting the efforts of the fed program that is purchasing them...and keeping rates low. When the feds are done buying MBS...they may sharply deteriorate and rates may sharply go up. Feds were planning to be done in June with the 500 billion they were going to invest in securities.
DJIA 6,926.49 +379.44 NASDAQ 1,358.28 +89.64 SP500 719.60 +43.07
WOW! Thanks to Jerry Schilling of Big Brothers and Sisters for Gallatin County for providing the GREAT insight put out by D.A. Davidson (email me or leave a comment for a copy).
Cheers!
Cheers!
P.S. I am on the board of BBBS...and this is the time of year we count on charitable donations. Any contribution is tax deductible...and can be given as a monthly or quarterly installment. Our children are counting on us more than ever with this program. If you are interested in giving OR fundraising: please let me know.
http://www.bigbrotherssisters.org/
http://www.bigbrotherssisters.org/
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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
