GOLD approaches $1200 an ounce today as rumors surface that India will buy another major share from the International Monetary Fund. What a phenomenon this has been. Search "gold" at www.chadcan.com to see my comments on this rare metal. As with any form of "currency"...whether tangible (money) in intangible (praise)...it is only worth something if there is a perception of value. Many holders of Gold currently are wondering when to get out of it according to some of the articles I am reading.
FNMA 4.5% is STEADY this morning trading at $102.25. Why steady vs. deteriorating? Usually before a Holiday weekend we see major Selling which deteriorates pricing. The markets will only be closed tomorrow though...and I forgot to take into account that there will be a trading session on Friday.
Remember it is the time the markets are closed on a holiday weekend that is a factor. When there are 3-4 days worth of news that could deeply affect the value of your short term "puts" and investments...it is sometimes better to get out of them vs. waiting for them to be devalued by a "run" on the markets on the first day the market opens back up.
Dow is up about 18 points currently.
NEW home sales came in MUCH higher than expected for last month! (440,000 vs 404,000 expected) This is good news. At the current pace of sales we have an inventory of 6.7 months. Perspective though: 440,000 is nowhere near the amount of sales that were taking place a few years ago...and the pace has been artificially quickened by the Homebuyer Tax Credit. This means that we may have more inventory than we think. HOWEVER: This makes homes on the market feel more valuable in the short term and with the greater number of buyers we may yet get some more traction toward more leveling out and even appreciation in the market.
Initial Unemployment claims came in lower than expected (466,000 vs. expectation of 500,000) and for the first time since last January they were UNDER 500,000!
Have a great holiday!
Chad
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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
