Monthly Archives: January 2009

Expect mortgage rates and pricing to hold steady (at current levels)

January 30, 2009

4th Quarter GDP fell 3.8%, the slowest quarterly pace in 27 years.  The number however, was better than market expectations of minus 5.5%.  The drop was due in large part to another sharp decline in consumer spending.  Business investment was … Continue reading →

Traders refer to this kind of a day as ‘blood in the street”

January 29, 2009

No place to hide in the market today.  Mortgage backs down 31/32’s, 10-year note down 1 and 7/8th points, and the Dow off 228. Traders refer to this kind of a day as ‘blood in the street.”  Today, Mortgage Market Guide’s … Continue reading →

Feds Balk, Market Walks

January 29, 2009

Rational market behavior is not the theme for today. Economic data was downright nasty, yet bonds and mortgage backs are both in the red.  Weekly Unemployment Claims hit the tape up 3K to 588K while Continuing Claims rose to record … Continue reading →

Main focus for the markets: FOMC statement

January 29, 2009

The FOMC statement was the main focus for the markets today, with the long end of the treasury curve and mortgage backed securities taking the brunt of the selling after the release.  Word has it that the lack of commitment … Continue reading →

Fed kept the target funding rate unchanged

January 28, 2009

Touting a significant Global slowdown, the Fed kept the target funding rate unchanged.  In the policy statement, the language concerning the purchase of Agency paper (MBS) remained unchanged.  They did however, open up the possibility of buying treasuries to keep … Continue reading →

Fed talk of good bank, bad bank scenario sends Dow up 128 points

January 28, 2009

Day two of the Federal Open Market Committee meeting is upon us with results/policy statement due out at 1:15 pm CST.  The Fed is expected to stand Pat with the potential to announce the addition purchase of treasuries and/or other … Continue reading →

Expect the tight-range trade to continue

January 27, 2009

A quiet, yet positive trade has developed today with month’s end and nasty weather setting in. Earlier this morning, S & P Case Shiller Home Price Indices continued to set new record lows as the 10-City Index fell 27% and … Continue reading →

Existing Home Sales posting sales up 6.5% to 4.74 million units

January 26, 2009

Markets are mixed to start the week as stocks are positive and bonds/mortgage backs are not so positive. Early news on the economy was bearish as Caterpillar announced layoffs of 20K plus, Home Depot of 7K, and a few others … Continue reading →