FNMA 4% broke above the 25 day moving average and gained 22bps today! This is good news. The coupon closed out the session trading at $99.91... For those who heard me talking about this on the radio this morning: The FNMA 4% was trading at $100.50 just a few weeks ago to give you some perspective. Whenever we break above a "moving average" it can provide a "floor of support" for the bond. This means that as the bond continues to trade over the next several sessions...we may see it stay above the "floor of support". The flip side: when we go below a floor of support...that floor can become a "ceiling of resistance." This can be seen in trending graphs. The price may go right up to the "ceiling" or down to the "floor" then bounce off to go back lower (hit the ceiling) or higher (hit the "floor"). It is an interesting phenomenon.
Remember: as the pricing on this bond goes up the rates come down. SO: Rates will likely go down slightly tomorrow. We are getting really close to 4.5%-ish for purchase money loans/excellent credit. May be a good time to send over some buyers to myself or your favorite Metlife agent. :-)
$8000 credit: remember that people who have not owned a home in 3 years...including first time home buyers are potentially eligible for the first time home buyer credit if they purchase a home. Let me know if you would like me to host an informational lunch on this great program.
REFINANCE...Obama we thank you: Please don't hesitate to call if I can help you with refinance. I am nowhere near capacity with my production (I have a great team and and full-time assistant!) The new "DU refi Plus program is a great way for those who put 20% down a few years ago to refinance with NO mortgage insurance...even if the value of their home has gone DOWN. Know anyone like this? Example: Homebuyer purchased a $100,000 home 4 years ago and got a loan for $80,000. If the home appraises for even $80,000 still...they may be able to refinance with zero mortgage insurance.
Another scenario: If a person purchased the home with a 1st and 2nd mortgage...then paid off the 2nd mortgage...or paid it down considerably...they MAY still be able to qualify for this great new program.
Feds bought $7.37 BILLION dollars worth of treasury notes today... Remember the difference though: When they purchase stocks in a company or mortgage backed securities...they are purchasing ownership in a company (it likely has assets, etc) OR they are purchasing something backed by mortgages (which are backed by REAL ESTATE).
Indirectly with these types of investments they are purchasing OWNERSHIP in something. When they purchase Treasury notes...they are purchasing a "promise" to be "paid a return" on their investment. The "promise" is from the United States Government...and nothing more.
The "return" is paid out ultimately to investors...by selling more Treasury notes...to pay out on the ones that are "cashed in." THIS IS WHERE I GET A LITTLE NERVOUS. I am seeing commentary that is very similar to the commentary when "Wall Street" was going nuts with the exotic instruments they were selling like CDO's and CDS's... The comments regarding current government spending: "...they must know something we don't." Hmmm...you decide.
GM's "LOOMING bankruptcy" weighed in heavily on the market today...GEEZ. I thought we gave them access to a cool 17 billion just a few weeks ago. The DOW however was kept afloat by strong showing in the Financials.
Goldman Sachs! News that they are attempting to raise some money to pay back some "TARP" funds hit the wires today. This coupled with better than expected earnings bode well for the investment bank.
Dow gave up just 25 points after being down as much as 115 points today. WE are up over 8000 again for now with tomorrow's session seeing the dow start at 8,057.
Have a great eve,
--
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
