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For the week of Jul 07, 2008 --- Vol. 6, Issue 28 |
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As your Trusted Advisor, I sincerely hope you have been enjoying your complimentary subscription to the MORTGAGE MARKET GUIDE WEEKLY. Due to the July 4th holiday, the next full issue will arrive on Monday, July 14 however below is a clip of what happened today so expect slightly better rates tomorrow. I hope you and your family enjoyed the Independence Day holiday weekend.
The MORTGAGE MARKET GUIDE WEEKLY is the industry's leading publication of this type, and I am pleased to provide this valuable resource to you. If you feel any of your clients, friends, family, or associates would benefit from keeping up-to-date on market and economic trends in this easy to read format, please let me know, and I would be more than happy to add them free of charge.
Best wishes to you, and please do not hesitate to contact me if I may be of any assistance to you at this time! |
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Volatility today has really been extreme, especially in the mortgage markets. Fannie and Freddie were the subjects; a report from Lehman Brothers hit early this afternoon and sent both stocks down by 20+%. The report brought out that with a new accounting rule (FAS 140) coming that requires those off-balance sheet assets to be brought back on and that includes huge amounts of mortgages that are rapidly going into the foreclosure process. It is unlikely though the either agency can raise the necessary capital (about $75B for both), so what to do? Sell mortgages; and that sent the mortgage market into a tail spin this morning. By mid-day though mortgage prices bounced up as the stock market resumed its bear market sell-off; then an hour later more selling in mortgages.
NAR will report pending home sales at 10;00 tomorrow, expected to be down 3.0%. Also at 10:00 May wholesale inventories are expected up 0.7%. Neither report is likely to have much lasting impact on the markets unless there is a huge shocker in the pending home sales.
