FNMA 4% TANKED today falling
through levels of resistance like a monkey falling through branches. IT FELL 207 BASIS POINTS today making us over 300 basis points lower than we were just 5 sessions ago.

Rates on the 30 year note went from 4.75-ish this morning to 5.625-ish this afternoon.

MAJOR factors include:

1. US Debt Maintains its AAA rating according to Moody's rating system. http://economictimes.indiatimes.com/US-governments-Aaa-rating-is-stable-Moodys/articleshow/4586291.cms This is GREAT news, but hard for bonds.

2. RECORD supply for investors to choose from with all the T-note auctions (35 billion dollars worth today!)

3. BETTER than expected numbers for Existing home sales: (4.68M vs 4.65M) Again: Great news, bad for bonds.

4. Higher than expected Consumer Confidence numbers. (54.9 VS 42.3 expected) http://economictimes.indiatimes.com/US-stocks-jump-after-consumer-confidence-level-surges/articleshow/4581986.cms

5. National Association for Business Economics (NABE) says that the recession may be ending in 2010.
This statement comes without regard for the continued shrinking GDP though...and with no evidence that it will grow. Tomorrow's analysts may have another view of this. Perspective: IT IS the shrinking GDP that really tells us if we are in a recession, depression or otherwise. Without growth in the GDP: it is IMPOSSIBLE to come out of a
"recession". For us on the street though: announcements like this are VERY POSITIVE even though bad for bond sales.

6. RENEWED INFLATION FEARS. IF the economy turns around with all the excess supply of money that has been "printed" (over one TRILLION dollars estimated) there will be an excess "supply" of US dollars chasing a finite amount of available goods and services. This "devalued" dollar...means that goods are more expensive: inflation.

How many clients do you have who could use a letter like this one?

Dear Fence Sitter,

Because I care about you and your family I want you to seriously consider taking action and purchasing a home in our marketplace. The pricing we are seeing in most markets is like a time machine. We have not seen sales prices like many of the ones available since 2002. Rates are still HISTORICALLY low...though have jumped significanly very recently due to signs that the markets are beginning to turn around among other factors.

Call me for a free consultation and to re-visit your real estate needs together,

See you soon,