WOW~!

FNMA 4.5% bond actually picked up 62 BPS today closing the day at $100.62. NICE! Rates got better twice and we are back in the 5% range on the 30 year fixed. SUPER.

Buying power: Payments with a note rate of 5.00 equal to about $5.37 per thousand borrowed. So if a person borrowed $200,000 that puts a payment at $1074. (200 x 5.37)

No news in the media and news of no auctions next week drew some money into Bonds.

Watch for sell off on Monday as investors who bought into the market recently will stand to make some money by selling their bond holdings. When bonds get a little over sold...or we see the value run up quickly, remember that we generally see a little downward trend after that. This is similar to the "bounce" concept we have talked about before when bonds rapidly decrease in value...usually enough bargain hunters start to buy and the pricing increases...or bounces up.

Oil is back up to $69.45/barrel. Did you see the "boo hoos" from the oil companies the last few days? (Chevron reported profits off 71% from last year this morning!) Remember that they were posting OBSCENE profits before this though...so I don't tend to feel too sorry. Perspective: If the oil co's would have made "regular" profits last summer...we would likely be about the same as then.)

DOW posts the best July since 1989 and is currently UP on the day closing at 9172...yeah hoo!