www.MetChad.com
Market Insight
Market Insight
WOW! I missed some major news last week.
FNMA 4.5% is off another 6bps today...just steady due to some fed buying power.
Major news I missed last week: Fed Mortgage Backed Security purchase program was extended to 1.25 TRILLION dollars vs. the 1/2 trillion they had committed to. Remember: the fed is buying "mortgage backed securities" which are pieces of paper that represent ownership of mortgages which represent ownership of real property. It is a purchase of an investment backed by a "tangible" asset.
94 BILLION in bonds will hit the market by Thursday so an over supply may drive prices up in the short term. This news caused some pricing deterioration in the session today...which was recovered oddly enough when the feds announced they will begin buying t-notes. (Unfortunately...the actual execution of this new plan would be much like saying: I will gladly charge up my credit card because I can afford it by using my home equity loan to make the payment monthly. We can only hope "they" know something we don't. This activity can be HIGHLY devaluing to the dollar...or in other words inflationary. Because the dollar is so intertwined in the WORLD economic system...if it hits the skids...watch for a "world" currency as I mentioned yesterday. China announced today that it wants to move away from US currency. Hmm.)
Great news! The Federal Housing Finance Agency reported that home prices in January gained 1.7% in value! Many of you may have caught this yesterday. It will be interesting to see if it will be the beginning of a trend or simply the temporary result of all the effort to create a low interest rate environment. Hopefully we will see some shreds of sunshine to hold onto such as this more often. Let those around you who are waiting for home prices to get lower: it may be time to start getting serious.
Warren Buffet quote I saw today: (paraphrase) ...by the time we see the robins, spring will be over. Remember that the only way to know where the "bottom" is will be to recognize it as we are on the way out the other side.
FNMA 4.5% is off another 6bps today...just steady due to some fed buying power.
Major news I missed last week: Fed Mortgage Backed Security purchase program was extended to 1.25 TRILLION dollars vs. the 1/2 trillion they had committed to. Remember: the fed is buying "mortgage backed securities" which are pieces of paper that represent ownership of mortgages which represent ownership of real property. It is a purchase of an investment backed by a "tangible" asset.
94 BILLION in bonds will hit the market by Thursday so an over supply may drive prices up in the short term. This news caused some pricing deterioration in the session today...which was recovered oddly enough when the feds announced they will begin buying t-notes. (Unfortunately...the actual execution of this new plan would be much like saying: I will gladly charge up my credit card because I can afford it by using my home equity loan to make the payment monthly. We can only hope "they" know something we don't. This activity can be HIGHLY devaluing to the dollar...or in other words inflationary. Because the dollar is so intertwined in the WORLD economic system...if it hits the skids...watch for a "world" currency as I mentioned yesterday. China announced today that it wants to move away from US currency. Hmm.)
Great news! The Federal Housing Finance Agency reported that home prices in January gained 1.7% in value! Many of you may have caught this yesterday. It will be interesting to see if it will be the beginning of a trend or simply the temporary result of all the effort to create a low interest rate environment. Hopefully we will see some shreds of sunshine to hold onto such as this more often. Let those around you who are waiting for home prices to get lower: it may be time to start getting serious.
Warren Buffet quote I saw today: (paraphrase) ...by the time we see the robins, spring will be over. Remember that the only way to know where the "bottom" is will be to recognize it as we are on the way out the other side.
Check out the attached video...it is deadly accurate. Enjoy the reactions of the skeptics in the face of the logical, though scary predictions over the last 3 years...which have come to pass. cool video <click here>
Happy selling!
Happy selling!
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
