The following script is intended to be used when speaking with your clients, prospects, and referral sources. It explains the current market conditions and will help solidify your position as a Trusted Advisor. You can even use it when you leave a voicemail message.
"Stocks opened to their worse levels since the mid-1990s, but are trading higher this morning.
There could be some good news later this week when Congress holds a hearing on mark-to-market. The Securities Exchange Commission Chief Accountant and the Chairman of the Financial Accounting Standard's Board will be testifying at the Thursday hearing. Hopefully, Congress can come up with a mark-to-market solution that will help the credit system flow again.
Currently, Mortgage Bonds are holding above the 25-Day Moving Average and the Falling Trendline. I recommend floating for now. But with rates already near 35-year lows, we may need to be ready to lock. I will keep you posted.""
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved
Thursday, March 5, 2009
"The morning began with Stocks lower and Mortgage Bonds pushing higher, as Traders anticipate a lousy Jobs Report tomorrow. The move higher in Bonds is important because it means they have managed to break above a difficult ceiling of resistance, at least for the moment.
In other news, Productivity in the fourth quarter dropped as the economy contracted faster than companies cut jobs and hours. And while the number of Initial Jobless Claims was slightly better than expected, the four-week moving average of Jobless Claims reached the highest level since October 1982.
Tomorrow's Jobs Report is expected to be dismal--estimates are for 650,000 jobs lost, but the number could be even higher. While this is unfortunate for our economy and those individuals, it could cause Bond prices to improve. I recommend floating ahead of tomorrow's report, and I will be watching closely to see how the markets react."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
In other news, Productivity in the fourth quarter dropped as the economy contracted faster than companies cut jobs and hours. And while the number of Initial Jobless Claims was slightly better than expected, the four-week moving average of Jobless Claims reached the highest level since October 1982.
Tomorrow's Jobs Report is expected to be dismal--estimates are for 650,000 jobs lost, but the number could be even higher. While this is unfortunate for our economy and those individuals, it could cause Bond prices to improve. I recommend floating ahead of tomorrow's report, and I will be watching closely to see how the markets react."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Wednesday, March 4, 2009
"Yesterday, Bond prices climbed to an important level of resistance at the Falling Trendline before being pushed back to the 25-Day Moving Average. These indicators are important because rates will not significantly improve unless prices can move above this ceiling.
In the news today, the ADP Report came in worse than expected--showing U.S. private firms shed 697,000 jobs in February. Adding to insult was a downward revision to January’s number, which erased another 90,000 jobs. Also today, the Obama administration released its Housing Rescue Plan designed to help responsible homeowners.
Currently, prices are in the midst of a trading range. Therefore, I recommend floating, but be prepared to lock if the situation changes."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
In the news today, the ADP Report came in worse than expected--showing U.S. private firms shed 697,000 jobs in February. Adding to insult was a downward revision to January’s number, which erased another 90,000 jobs. Also today, the Obama administration released its Housing Rescue Plan designed to help responsible homeowners.
Currently, prices are in the midst of a trading range. Therefore, I recommend floating, but be prepared to lock if the situation changes."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Tuesday, March 3, 2009
"Stocks are looking to rebound today after yesterday's sell off that saw the Dow fall below 6,800 for the first time since October 1996.
On the radar today, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner will discuss the budget in front of separate Senate and House committees. They will try to shed some light on plans to bring the ailing US economy back to life.
For now, I recommend floating, as prices are near the middle of a comfortable trading range. If a change of course is required as information on the budget is presented, I will let you know."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
On the radar today, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner will discuss the budget in front of separate Senate and House committees. They will try to shed some light on plans to bring the ailing US economy back to life.
For now, I recommend floating, as prices are near the middle of a comfortable trading range. If a change of course is required as information on the budget is presented, I will let you know."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Monday, March 2, 2009
"In early trading this morning, the Dow fell below 7,000 for the first time since 1997, as Stocks are trading lower on fears that the recession is getting worse.
Also pressuring Stocks lower is news that insurance giant AIG lost more than $61 Billion in the 4th quarter of 2008--which is the biggest loss ever for a US company. As a result, the government is preparing to provide AIG with a $30 Billion line of credit using money set aside from the TARP fund created last year.
Despite the drop in Stocks, Bonds are trading near unchanged levels. For now, I recommend carefully floating, but be prepared to lock if Stocks reverse higher."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Also pressuring Stocks lower is news that insurance giant AIG lost more than $61 Billion in the 4th quarter of 2008--which is the biggest loss ever for a US company. As a result, the government is preparing to provide AIG with a $30 Billion line of credit using money set aside from the TARP fund created last year.
Despite the drop in Stocks, Bonds are trading near unchanged levels. For now, I recommend carefully floating, but be prepared to lock if Stocks reverse higher."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
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