Hey!

What a day...we are about 19 bps UP in pricing on our FNMA 4.5% so we are hovering in the 5-5.25% range still for the 30 year fixed money. The bond is trading at $100.34.

The bond was unchanged for much of the day due to some better than expected news! The "consumer confidence" report actually came stronger (54.1 vs 47.7 in July) and the "Case-Shiller" home Price Index fell by the smallest drop since April 2008. Granted...it still showed that home prices are about 15.4% LOWER nationwide than they were a year ago. Perspective though: Home prices have RISEN by 2.9% since the first quarter of this year. This was the first GAIN in THREE YEARS! Buyer's perspective: HOME PRICES ARE 15.4% CHEAPER than a year ago!

Sorry to all the fence sitters out there...home prices are more expensive and rates are about 1/2 percent higher than they were in January. In the same turn: Congrats home buyers! Home prices are 15.4% LESS than they were a year ago and rates are INCREDIBLE right now giving people about 15% MORE buying power on top of the low prices.

It is GREAT news that the home prices are heating back up. Remember the drivers in this: Low rates and incentives like the $8000 tax credit and other state programs = MORE BUYERS. "More buyers" have been soaking up the GLUT of inventory with help in that endeavor through construction cooling over the last 18 months...so "supply" is down...and "demand" is up. Believe it: things are going to slowly heat up before gathering momentum again...but things are heating up and will gain momentum again if only the steady appreciation we traditionally expect in real estate. As inventory shrinks...builders will start to ramp up production...and hopefully things can get flowing again.

Have a great eve!