Todays Market Update

Thursday September 24, 2009 5:30 pm ET

Current Trend Direction: Sideways

Risks favor: Carefully Floating

Current Price of FNMA 4.5% Bond:$100.94, +28bp

Mortgage Bonds ended higher on the day, up 28 basis points. This is attributed to the media's interpretation of yesterdays Fed meeting.

The Fed did not touch interest rates as expected. However the Fed said they are going to draw out the remaining commitment to buy Mortgage Backed securities through the first quarter of 2010. This tells us that the Fed most likely will not be purchasing more than the original $1,25T they are committed to. Rather, it tells us the Fed is attempting to provide a smoother transition to normal market conditions. It also tells us that mortgage rates will soon begin to move gradually higher instead of a large bump in rates.

Let's be clear, mortgage rates will gradually begin to climb. So it's important to note that if you have been sitting on the sidelines watching interest rates and being entertained by the volatility, the time to make your move is upon you.

In this morning's economic news, Initial Jobless Claims fell by 21,000 in the latest week to 530,000, which was below expectations of 550,000. While this was a better than expected read, it's still not exactly good news regarding the overall employment situation. Think about it...530,000 more people applying for unemployment benefits for the very first time really isn't something to get too excited about. Bonds worsened initially on the headline, but did finish the day up 28 basis points.

Existing Home Sales were reported at 5.10 million, less than expectations of 5.35 million and the first decline in five months. However, there was some good news in the report, as inventories of unsold homes fell to an 8.5 month level...the lowest inventory level seen since April 2007.

We remain cautiously floating interest rates here.




30 Year Fixed Rates
4.99% APR 5.00%- No Points

30 Year Fixed No Income Check
5.625% APR 5.65% - No Points



30-Year Jumbo Fixed Rates to $729,000


5.25% APR 5.258% - No Points
5.00% APR 5.013%- 1 Point


30-Year Jumbo Fixed Rates to $1,000,000


6.00% APR 6.01%- No Points

5/1 Jumbo Arm to $1,500,000
4.50% APR 4.54% - No Points


7/1 Jumbo Arm to $1,500,000
4.875% APR 4.69% - No Points

Todays market Update

Today's Market Update- Thursday September 10th, 2009 1:05 PM ET
Current Trend Direction: Bond Prices Higher-Interest Rates Lower
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond $101.22, - +53bp

Mortgage Bonds are higher on the heals of today's auction of 30-year bonds. The auction went of slightly better than expected. This week's auctions have gone rather well and have showed decent foreign appetite for our Bonds. This may not last very long as interest rates around the world begin to tick higher, offering investors a more attractive place to put their money, which in turn would force the US to offer higher rates on our Treasuries in order to compete and attract investment.
With the summer now behind us and the kids back in school, it's time to take care of the thing's we have put off. This is an excellent opportunity to obtain some of the lowest mortgage rates seen in a while.
We continue to cautiously float rates here.

30 Year Fixed Rates
4.99% APR 5.013%- No Points

30 Year Fixed No Income Check
5.625% APR 5.65% - No Points

30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.263% - No Points
5.00% APR 5.013%- 1 Point

30-Year Jumbo Fixed Rates to $1,000,000
6.00% APR 6.01%- No Points

5/1 Jumbo Arm to $1,500,000
4.50% APR 4.54% - No Points

7/1 Jumbo Arm to $1,500,000
4.875% APR 4.69% - No Points