Hey there!
FNMA 4.5% Bond was up 50 basis points and we are over 100 basis points higher than we were just a few weeks ago on that one. Rates are recovering nicely and the 30 year fixed loans are still in the low 5% range.
Contributing to the rally in bonds was the announcement that the pending home sales were down 16% for December. Remember Bad news generally equates to an urge for investors to put their money into something that will be relatively safe like Mortgage Backed Securities.
Not today, but usually when money pours into the bond market we see it move away from stocks. The Dow was down just 12 points today. S&P and Nasdaq were also pretty even today.
Rumor Mill: circulating today was a rumor that the feds may extend the MBS purchasing program past the March termination date of this year. They have about 109 billion more to invest over the next 12 weeks and then they are out as things sit now. (See comments from yesterday on this at www.chadcan.com). My guess? I don't think it is true at this point. The rumor did help the bond market though.
Who will you be in 2010? This question was raised to me recently and it has been cause for reflection. Additionally: Who were we in 2009? Who were we in 1999? WHO we are is much bigger than what we do for a living. There is this magic that happens when people realize who they really are. It sounds pretty cheesy but EACH person has a "GREATEST SELF" that is out there waiting for them to become. IN FACT: that "greater self" already exists underneath all the gook that we allow to build up on our emotional self.
The key: recognizing those things that bring us closer to the core of who we are and doing them. That is easy to say isn't it? Most important realization though: WHO I am is much greater than what I do for a living. I would bet that is true of you too. So: Who are you in 2010?
Cheers,
Chad
