FNMA 4.5% Mortgage Backed Secturities Quote: Up 12 bps today at $100.12 at the end of the session. Rates will likely hold in the morning and are currently in the 5% range for the 30 year fixed loan product.
Initial Jobless Claims came in at 484,000 which was quite a bit higher than what was expected. We were a little surprised that there was not as much impact on the pricing of Mortgage Backed Securities. Remember that initial jobless claims represents those who apply for unemployment benefits for the first time.
DOW closed at a 2010 HiGH if 11, 144 points.
Foreclosures are UP 19% from February to March and there seems to be some movement toward actually focusing more on Job creation and moving away from simply trying to "rescue" those at risk of foreclosure. That seems to make more sense when we grasp the idea that it is joblessness that creates the foreclosure in the first place. This is a classic example of treating the "symptom" and pouring billions into a failing endeavor vs. treating the problem.
All of the billions put into note modifications to "rescue" those at risk of foreclosure have yielded mixed results. The foreclosure rates of "modified" mortgages is DOUBLE the national average with most mortgagors falling behind again within 3 months of the completed modification.
TAX day! Did you catch the statistic that 47% of Americans DO NOT pay income taxes? How about the one where ONE THIRD of those people who do not pay income taxes actually GET BACK MORE than they paid in? Perspective: ALL people pay "social security" and "Medicare" taxes and most people pay sales taxes though so don't feel too bad for Uncle Sam or his 50 states...
Have a great eve!
Chad
