FNMA 4.5% bond is UP 59 basis points today! Wow. We actually broke above the 50 day moving average for that bond. Remember that the "moving average" tends to provide a floor of support when we break above it. Rates are excellent in the 5% range still on the 30 year fixed.
Money was pulled out of the financials market as news that Morgan Stanley and Goldman Sachs are expecting lowered earnings. Citi also flooded the market with stock offerings. Remember "supply vs. demand"? Here it is again. See more info here: http://www.marketwatch.com/story/citi-slide-weighs-on-financials-in-pre-open-trade-2009-12-17
Added supply of anything seems to dilute the value. This is the worry over "printing money" and the worry over creating more "common shares" for companies to sell to raise capitol. It makes the pieces of the pie a little smaller without increasing the size of the pie so to speak.
Dow actually lost 132 points with the above and other economic news appearing to weigh in.
Tonight Metlife gets to be a part of the Southwest Montana Building Industry Association's christmas party. I know it will be a great time. I have been thinking about the importance of trade organizations through this time. We have so many reasons to stick together with those who share our careers no matter what that career is. Trade organizations can provide great support. GAR or Gallatin Association of Realtors is another one. The key is: they are what you make of them. As with so much in life, you get what you give. Even Churches or religious groups are the same way...connecting with others who are interested in progressing in a similar direction as you can be very rewarding but it is what you make of it.
Cheers!
Chad
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
cschauers@metlife.com
