FNMA 4% blew past the 25 day moving average ($100.11) to close at $100.53...the highest level we have seen in a few weeks. Rates for purchase loans are flirting with the 4.5% range again!!!
95 BILLION dollars worth of bonds offered for sale today were soaked up in the money's flight to their relative safety due to swine flu fears. Imagine: a pandemic keeping people in their homes instead of working, recreating or otherwise making/spending money. Generally such a huge addition of supply to the bond market is not good for mortgage backed securities...today was an exception.
Swine flu may get a couple of days or even weeks in the spotlight making investors nervous about the future. Remember when they are nervous they seek relative safety for their money...and a good balanced investment for many is the mortgage backed securities that we need to sell to keep mortgage rates low. WE COULD SEE THE BEST RATES EVER AGAIN IN THE NEAR FUTURE...and for a few days instead of a few hours.
The World Health Organization raised the threat level of the outbreak to a "4" from a 3. The MAX is "6" so many are taking notice. Mexico closed schools nationwide until May 6th and nearly 150 are dead from the virus. Wash your hands...:-)
Dow lost just 51 points today.
Countrywide is NOW officially called: Bank of America.
Have a great evening!
Remember: NOW is the time to do something. If you know ANYONE who could benefit from a purchase or refinance mortgage: please let us know.
Experience Matters,
