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25 Sept – 2:10 PM ET 1:08 PM ET – Talks of bailout turn rosier as both parties come together for an agreement that will alleviate most fears. Stocks soar – Mortgage Bonds fall to their worst level of the day as investors move from safe haven of Bonds into the equity markets 11:17 AM ET – Weak housing and durables orders and a higher than expected initial claims can’t keep Mortgage Bonds up – now flat on the day. The 5.5% Bond is 41bp off high. Stocks still at lofty levels 10:41 AM ET – There was one positive sign in new home sales – the inventory of homes available for sale in August shrank 4.4% to 408,000, the lowest since August 10:25 AM ET – There will be a $24 billion five year Treasury note auction at 1:00pm ET. The added bond supply could weigh on prices this afternoon in light of yesterday’s mediocre reception of a record $34 billion in two year notes. The Dow powers up by 230 points. Mortgage Bonds trolling around lows for the session 10:05 AM ET – Mortgage Bonds pull back after earlier highs. The Dow is up 160 points higher pulling some dollars from Bonds on favorable news that rescue deal will get done. New homes sales lower than expected but that news isn’t earth shattering. Oil at $105.17/barrel down 50 cents 8:40 AM ET – Durable orders fall -4.5%. Initail claims higher than expected. Mortgage Bonds get a boost. Stock futures still higher 8:05 AM ET – Industrial and financial giant General Electric says 2008 earnings could be lower than expected by 15% – suspends stock buyback program. Oil at $104.11/barrel down $1.61. Mortgage Bonds not yet trading – stock futures mixed. |
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Mortgage Interest Rates* |
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Rates as of Thursday, 25th September, 2008: |
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*Rates are subject to change due to market fluctuations and borrower’s eligibility. |
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Archive for September, 2008
Market Update 9-25-08
Posted in Uncategorized on September 26, 2008| Leave a Comment »
Interest Rates
Posted in Uncategorized on September 24, 2008| Leave a Comment »
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Mortgage Interest Rates* |
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Rates as of Monday, 22nd September, 2008: |
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*Rates are subject to change due to market fluctuations and borrower’s eligibility. |
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Last week in review
Posted in Uncategorized on September 24, 2008| Leave a Comment »
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“THE PATH TO SUCCESS IS TO TAKE MASSIVE, DETERMINED ACTION.” Anthony Robbins. And success in stabilizing the markets and the economy is exactly what the government is hoping will happen as a result of the massive, determined actions they took late last week in response to unprecedented happenings in the financial markets. Treasury Secretary Hank Paulson announced that the US government will guarantee money market funds, after panic led to a “run on the bank” type of environment. A whopping $180 Billion was withdrawn from market funds on Thursday alone. And the fear was so great that a premium to put money into Treasury securities was paid, which actually exceeded the rate of return. So effectively, the return was negative! People were actually paying for a place to put their money that would be safe because they had fears of losing principal. The government guarantee helped to ease these fears and stabilize the markets. The Fed announced plans to create a market place for illiquid mortgage debt. This should do a lot of long-term good to help the housing and lending environment. As if that weren’t enough, the Securities and Exchange Commission also placed a temporary ban on the short selling of 799 different financially related stocks. What prompted these dramatic actions? Very dramatic happenings earlier in the week. After 158 years in existence, Lehman Brothers filed for bankruptcy last Monday due to overexposure of high-risk loans in the mortgage arena. Then, the Fed gave insurance giant AIG an $85 Billion lifeline to keep it from going into bankruptcy, after initially stating it would not intervene. Then it was announced that Merrill Lynch is being acquired by Bank of America, which will save them from the same fate as Lehman Brothers, and now troubled bank Washington Mutual is looking for a buyer as well. Also playing a role was the fact that the Fed left its benchmark Fed Funds Rate (the rate banks charge each other for overnight lending) unchanged on Tuesday, not wanting to counter the recent improvements the US economy has made in the way of inflation. While this benefited Bonds and home loan rates earlier in the week, Stocks felt heavy selling pressure on the news…which added to the reasons for the actions taken late last week. The government’s announcements on Friday are great news for the overall health of our financial system, though they did cause Bonds and home loan rates to move away from their best levels of the week. All in all, Bonds and home loan ended the week slightly worse than where they began. Additionally, stocks had their most volatile week in history – but ended the week almost exactly where they started. THE PATH TO SMART SPENDING DEFINITELY INVOLVES TAKING ADVANTAGE OF GREAT DEALS! CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR FIVE FANTASTIC FREEBIES…AND A LINK TO TWENTY-FIVE MORE! |
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Forecast for the Week |
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The ride isn’t over…the coming week may see more wild movement in the markets, as the financial sector responds to all the recent action, along with several reports due in the latter part of the week. We’ll get a read on the housing market with Wednesday’s Existing Home Sales Report and Thursday’s New Home Sales Report. And we will get a read on the economy with Friday’s Gross Domestic Product Report (GDP is the broadest measure of economic activity) and Thursday’s Durable Goods Report. What are “durable goods”? Simply put, they are items that are durable (i.e. cars, furniture, appliances, games, cameras, business equipment, etc), and are made to last longer than three years. This report shows a good measure of consumer and business consumption and buying behavior, and depending on the health of the report, could add to the volatility we have seen. Remember when Bond prices move higher, home loan rates move lower…and vice versa. As you can see in the chart below, Bonds and home loan rates are still much improved from several weeks ago, despite giving up some recent gains. This could be a great time to take a close look at your home loan financing needs, as rates remain at historic lows. As always, I will be watching closely to see how Bonds and home loan rates continue to respond in these volatile times. Chart: Fannie Mae 5.5% Mortgage Bond (Friday Sep 19, 2008) |
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The Mortgage Market View… |
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The Week’s Economic Indicator Calendar |
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Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. Economic Calendar for the Week of September 22 – September 26
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The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors. As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you. In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: stdrake@windermere.com If you prefer to send your removal request by mail the address is: Stacey Drake
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Market Update – Friday, September 19, 2008
Posted in Uncategorized on September 24, 2008| Leave a Comment »
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Market Update – Friday, September 19, 2008 What a week!!!! An historic week is being capped off with an incredible day of news events, with an enormous impact. Thank goodness the economic calendar is quiet today, as government announcements have taken center stage. There are three huge announcements that are changing the financial markets around the world. First, we have been talking about the fear over the safety of money in savings for many Americans. Banks are either folding or on the brink of collapse, bonds are losing some or all of their value, and stocks are dropping at an alarming rate, all causing tremendous fear and anxiety for investors. This fear caused a flight to quality of such magnitude that the return on Treasuries was actually negative. People are actually willing to pay money in order not to lose money…forgetting all about any type of return for their investment. And yesterday this panic lead to a modern day “run on the bank”. There was $180 Billion taken out of money market funds due to a lack of confidence. This resulted in a “breaking of the buck”, which means that the Net Asset Value or NAV of some money market funds dropped below $1. Virtually all investors consider money market funds very safe and do not expect any change in the principal value, so a $1 invested will always result in a $1 balance plus any interest. But once the $1 valuation was broken investors panicked and the flood gates opened. This caused the Treasury to step in. This morning, Treasury Secretary Hank Paulson announced that the US government will guarantee money market funds. It should be noted that this does not include high yield, enhanced type, or riskier money market funds. This action is helping settle the markets and as a result stocks around the world are marching higher. Another big announcement that is helping to calm the global markets and regain confidence is the Fed’s decision to create a market place for illiquid mortgage debt. As we know, the mortgage mess has buried many companies, some were previous giants with long histories like Lehman, Bear Stearns, Fannie & Freddie. The big problem is that there are no buyers for this debt in the current marketplace. So the Fed is stepping in to create a vehicle to make these purchases of mortgage debt and provide a liquid marketplace. This is a brilliant move which has been very well received and should do a lot of long term good to help the housing and lending environment. Stocks around the world have responded very favorably to this. And there is more…short selling will be limited. The amount of greed is incredible. Many short sellers have used currently illegal tactics such as “naked” short selling. This means they are shorting a stock without the required step of first borrowing it. This has exacerbated the problem in financial stocks as they get unmercifully beaten down. This in turn hurts their balance sheet which also limits their ability to take on credit. And this is the vicious cycle we have been witnessing. Worse yet are the short sellers who sent armies of individuals to use scare tactics on message boards to convince people the sky is falling. Today, the SEC has placed a ban on short selling in 799 financially related stocks. This ban will last through October 2nd and can be extended if needed in 30 day increments. Some other countries around the globe are also instituting similar bans. The SEC acted and hopefully this will add another level of calm to the current financial crisis. These 3 steps will not fix everything, but it sure looks like a step in the right direction. And while interest rates are a bit worse this morning…who cares. The health of our financial system and confidence that our hard earned savings will not be wiped out is far more important. What good is earning a paycheck if there is no place to safely save that money. Interest rates will undoubtedly continue their volatile ride, but should remain within the 6.00% range. Have a good week-end and happy selling. |
Stacey Drake
Branch Manager/Mortgage Consultant
Windermere Mortgage Services Series LLC/Wall Street
206-256-0066
206-256-0067 fax
888-201-5338 toll free
email: stdrake@windermere.com
www.windermeremortgageservices.com
Interest Rates
Posted in Uncategorized on September 24, 2008| Leave a Comment »
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Rates as of Friday, 19th September, 2008: |
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*Rates are subject to change due to market fluctuations and borrower’s eligibility. |
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Energy Prices
Posted in Uncategorized on September 11, 2008| Leave a Comment »
Lower Interest rates
Posted in Uncategorized on September 11, 2008| Leave a Comment »
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2:16 PM ET – Mortgage Bonds starting to slip as stocks gain some steam. 11:40 AM ET – Mortgage Bonds fall from their highs now trading flat as stocks trade well into positive territory. Oil drops on slowing demand – $102.68 down 66 cents. 10:07 AM ET – Oil rises by a $1 to $104.25 after OPEC agreed to trim oil production by more than 500,000 barrels a day. Mortgage Bonds claw their way back and pare losses as the volatilty continues. Stocks higher in the seesion. 9:05 AM ET – Traders take profits on Mortgage Bonds – 5.5% down 31bp. Stocks futures well into positive territory. 8:25 AM ET – Lehman Bros reports $3.9 billion quarterly loss and cuts dividend to 5 cents from 68 cents. No economic data today. Oil unchaged at $103.13. Mortgage Bonds flat in early trading. Stock futures point towards a mixed open. |
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Mortgage Interest Rates* |
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Rates as of Wednesday, 10th September, 2008: |
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*Rates are subject to change due to market fluctuations and borrower’s eligibility. |
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Market update 9-8-08 for Magnolia Bluff
Posted in Uncategorized on September 9, 2008| Leave a Comment »
Fannie Mae’s 6% Mortgage-Backed-Security was up 100 basis points at the close of trading today (in a bond market where a 25 point movement can cause a rate change), and many banks re-priced toward the end of trading for the better.
The market has staged a huge rally as investors are at least temporarily relieved by the government’s bail out of Fannie and Freddie. In stocks, financials and home builders are showing solid gains in early trading as well. The overall credit issues that lead to the takeover are still the fundamental out there, so trading should be volatile indefinately.
30 Year Fixed: 5.75%
30 Year Fixed Jumbo Conforming: 5.75%
30 Year Fixed Jumbo: 7.50%
FHA: 5.875%
FHA Jumbo: 6.25%
A more comprehensive email regarding the Conservatorship of Fannie and Freddie, and what it means to you to follow.
Fort Lawton Housing and redevelopment plans!
Posted in Uncategorized on September 8, 2008| Leave a Comment »
Interbay Jail
Posted in Uncategorized on September 3, 2008| Leave a Comment »
Date: Wed, 3 Sep 2008 13:07:04 -0700
From: susiealgard@gmail.com
To: susiealgard@gmail.com
Subject: Interbay Jail Forum Meeting – Thursday, September 11th 7 pm
Dear Friends and Neighbors,
I wanted to keep you all in the loop regarding the status of the potential Interbay Jail. There will be a public meeting on Thursday, September 11th from 7 pm to 9 pm. There was a meeting several weeks ago but the turnout from the neighborhood was so low that I’m afraid the city got the wrong message – that we’re okay with the jail in Interbay. I encourage you all to attend as this is an excellent forum to let the public leaders know that we are opposed to the jail in Interbay. Tim Burgess (city councilman) is going to attend and he will be one of the people deciding where the jail will be located. The Stranger quoted Burgess saying that the Interbay jail “Makes the Most Sense”, http://slog.thestranger.com/2008/07/council_member_burgess_says_interbay_jai. Come and let him know that you’re opposed to this. It’s not too late for our voices to be heard!
Details:
September 11th 7 pm to 9 pm
Catherine Blaine Elementary School Cafeteria
2550 34th Ave West
Magnolia
Sponsored by the Queen Anne Community Council and the Magnolia Community Club. If you’re not familiar with the reasons that the City of Seattle is looking to build a jail, there’s information on their website, http://www.seattle.gov/MUNICIPALJAIL/.
Hope to see you all there!
Susie
(concerned parent)
http://nointerbayjail.com (please feel free to blog/comment on this site)
BlogMagnolia 