WOW!
Stock market was off 347 points in the Dow on Thursday, 140 points on Friday and then UP 400 or so yesterday! Today we saw the index come down another 36 points to 10,748.
FNMA 4.5% bond actually came UP 28 basis points to close out the session and we are looking healthy in the mortgage backed securities market. There are no real economic reports due out tomorrow so things in the bond market will be affected by the news. Hope for stability. I am interested to see how things play out over the next few weeks with so much going on in the world economy.
TRILLION DOLLARS: Did you know it would take just over 3400 years of spending ONE MILLION dollars a DAY to spend a trillion dollars? WOW. How is that for some perspective. We are getting used to the HUGE sums of money that are being thrown around in conversations and in the media.
The European Union will be getting theirs: a nearly one trillion dollar commitment to them was announced this weekend with money coming from the International Monetary Fund and a pool of resources by the Union. Interesting thought: some say the shortfalls are coming from "socialism" collapsing on itself.
REMEMBER that the funds for all the magical government provisions AND jobs need to come from somewhere... When we eliminate the contributions from private enterprise, the government is not run like a sustainable business. Here in the USA: ventures from the DMV to the post office have really struggled despite the massive budgets that they are running with. When we eliminate fiscal responsibility from a business: there really is not any reason to expect it to succeed. Spending more than you make in your own household never quite works out...so on a massive scale: it doesn't work either.
RATES are still rediculously low with 30 year fixed notes coming in at just under and just over 5%. We are fortunate to be in a great rate environment and in the middle of some excellent pricing in our marketplaces. The key: getting through the next 4-5 years of continued "normalization." Normalization: the consumer understanding that not everyone deserves a house: check. The understanding that there are a ton of motivated sellers including banks who own real estate: check. The understanding that the market will not continue to deteriorate forever: not quite there. The feeling of general safety in the stock market and financial security at home which promotes big ticket retail spending by the general populace: not quite there.
Have a great week!
Chad
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Chad Schauers
Montana Mortgage Lender, Bozeman, Montana
Personal Cell: 406 799 8613
Personal Email: metchad@gmail.com
