"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.
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.
Friday, January 23, 2009
Inflation was back in the news today. Fed member Frederic Mishkin appeared on CNBC this morning stating that inflation could come to the forefront given all of the government programs. The news is keeping Mortgage Bond prices near unchanged levels.
The Federal Reserve Bank of New York reported they purchased $19B in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae between January 15 and January 21, bringing its total purchases so far up to $52.6B, or around just 10% of their $500B commitment through the end of June. The program was instituted to shore up the slumping housing market.
For today, I am currently recommending floating as support seems to be holding just below where Mortgage Bonds are trading. With the Fed still buying Mortgage Backed Securities there is a potential that home loan rates could improve in the near term."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
The Federal Reserve Bank of New York reported they purchased $19B in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae between January 15 and January 21, bringing its total purchases so far up to $52.6B, or around just 10% of their $500B commitment through the end of June. The program was instituted to shore up the slumping housing market.
For today, I am currently recommending floating as support seems to be holding just below where Mortgage Bonds are trading. With the Fed still buying Mortgage Backed Securities there is a potential that home loan rates could improve in the near term."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Thursday, January 22, 2009
It's been another wild and volatile morning for Mortgage Bonds after a slew of disappointing economic news and negative corporate earnings reports initiated an early sell-off in the Stock market.
Initial Jobless Claims reached its highest level since November 1982. In addition, housing remains weak as Housing Starts fell more than 15% in December and Building Permits also came up short.
Mortgage Bonds are attempting to trade above support. I recommend floating for now, but I will let you know if today’s volatility requires a change of course."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Initial Jobless Claims reached its highest level since November 1982. In addition, housing remains weak as Housing Starts fell more than 15% in December and Building Permits also came up short.
Mortgage Bonds are attempting to trade above support. I recommend floating for now, but I will let you know if today’s volatility requires a change of course."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Wednesday, January 21, 2009
Mortgage Bonds are trading just above important support at the Rising Trendline, and with no economic reports scheduled for release today, pricing could be influenced by action in the Stock market. After a rough start in 2009, Stocks are hovering right near important support as well, and could bounce higher from here.
Adding a slightly positive tone to Stocks this morning is news that IBM beat earnings estimates for the 4th quarter. The tech bellwether said it also plans to earn $9.20 a share in 2009 versus expectations of $8.70.
After a few days of pricing pressure, Mortgage Bonds are trading near oversold conditions, which could make prices ripe for a reversal higher. Couple that with the strong underlying support from the Fed and it suggests for the time being to float."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Adding a slightly positive tone to Stocks this morning is news that IBM beat earnings estimates for the 4th quarter. The tech bellwether said it also plans to earn $9.20 a share in 2009 versus expectations of $8.70.
After a few days of pricing pressure, Mortgage Bonds are trading near oversold conditions, which could make prices ripe for a reversal higher. Couple that with the strong underlying support from the Fed and it suggests for the time being to float."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Friday, January 16, 2009
"This morning, the Consumer Price Index for 2008 was reported the lowest since 1954, indicating that inflation is not a problem. The big news of the day, however, is in the banking sector.
Citigroup reported a $8.29 Billion loss, completing its worst year ever since its inception in 1812. Bank of America also lost $1.79 Billion in the 4th quarter, making 2008 the bank's first yearly loss in 17 years. However, Bank of America received a lifeline late last night in government funds in exchange for preferred stock.
Currently, the Stock market is rebounding a bit higher, which is applying selling pressure on Bonds. However, prices have already improved since early lows. For now, I recommend floating, as we watch to see if prices can hold."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Citigroup reported a $8.29 Billion loss, completing its worst year ever since its inception in 1812. Bank of America also lost $1.79 Billion in the 4th quarter, making 2008 the bank's first yearly loss in 17 years. However, Bank of America received a lifeline late last night in government funds in exchange for preferred stock.
Currently, the Stock market is rebounding a bit higher, which is applying selling pressure on Bonds. However, prices have already improved since early lows. For now, I recommend floating, as we watch to see if prices can hold."
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
Thursday, January 15, 2009
"There has been a barrage of economic data and news released today, yet Bonds have remained relatively steady so far this morning. Meanwhile, JPMorgan Chase surprised the market with an earnings report that beat expectations. It's been awhile since a financial Stock actually surprised to the good side.
In other news, inflation is virtually non-existent at the wholesale level as the Producer Price Index showed that prices fell in December for the fifth consecutive month. Tomorrow’s Consumer Price Index report will show how costs have increased or declined on the consumer side, and I will be watching to see how the markets respond.
Overall, Bonds continue to move in a sideways pattern, thanks in part to the Fed buying support of Mortgage Backed Securities. For now, I recommend floating.
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
In other news, inflation is virtually non-existent at the wholesale level as the Producer Price Index showed that prices fell in December for the fifth consecutive month. Tomorrow’s Consumer Price Index report will show how costs have increased or declined on the consumer side, and I will be watching to see how the markets respond.
Overall, Bonds continue to move in a sideways pattern, thanks in part to the Fed buying support of Mortgage Backed Securities. For now, I recommend floating.
© Copyright 2001-2008 The Mortgage Market Guide, LLC. All rights reserved.
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