Tuesday, November 29, 2011

The Countdown Begins

There are 27 days until Christmas, which means 26 shopping days and dieting days... My calendar doesn't seem full yet, but I have this sneaking suspicion that it is going to get full and fast.
I spent the last holiday weekend with family, both sides, and friends. It was a good time, but missed those who could not be there. I spent the day after shopping for those who are less fortunate and enjoyed myself immensely. I got to spend a lot of time with my daughter and got to see how much she is truly like me. Poor dear! Friday, Saturday and Sunday hosted a total of 5 baseball games at BLD. The boys did well, and it was a great time.
I am now off to make more lists and get things done, so that my home feels the holiday spirit that I have in me.
On a work note, bonds are still doing well as are Stocks, I would love this world of positive in both markets to stay, we'll see how long it lasts.

Tuesday, November 22, 2011

GDP revised lower

The GDP was revised lower today and the bond market has held strong on that news, as it was not great information for bonds. The market is up 19 basis points today and is still trading between a strong layer of support and resistance. Tomorrow we will have a lot of economic data thrown at us as the market is closed Thursday and is on a shortened trading day Friday. Rates are amazing and taking advantage of these rates at any time would be a great idea. Call me if you would like to discuss your options.

Monday, November 14, 2011

Global Economy, and Understatement

It is an understatement to say that we are a global economy any more. When worries in one part of the world can send the rest of the world's economies realing. Europe is facing their worst economic times since WWII. This statement in and of itself shakes the foundation of all economies. The stock and bond markets are playing on the teeter totter today, and it appears with all of the unrest in the world, they will keep playing.
The Federal government is still purchasing MBS, but the effect has been tempered by the volatility of the global markets. Does this mean that you shouldn't move forward with your purchase or refinance, or does it mean you should hurry up...it means neither, it just shows that we are in an interest rate market that has never been seen before, and if you are ready jump in, the market is what it is.

Tuesday, November 8, 2011

The Effect a European Leader has on our market

The Bond market started the day to the upside and just recently has lost traction and is in negative territory. Why??? News (rumors) out of Italy today that their prime minister is going to resign has our Stock Market doing the Jig. It appears that the Stock Market views this move as proactive and in the right direction to stave off the volatility that could be coming in their capital markets.
For those of you in contract to purchase a home, lock today, who knows how long this slide will last and the rate you can get today is terrific. For those of you refinancing, just depends on when you really want to close. Sooner rather than later? Then lock, stop the stress and take advantage of what the market has given you. For those of you waiting to see 3%, keep waiting, but my crystal ball is not sure if we will ever see that 30 year rate come to light.

Monday, November 7, 2011

The MBS market started the day down, but has since recovered and is not in positive territory. The stock market is down just a few points and with the upcoming Treasury auction everything could change. We see it everyday it seems like.
Greece's Prime Minister has resigned, it appears the market likes the news and that the new regime will most likely take the EU deal and try to restructure. But just when we thought we could breathe, new out of Italy... The Italian economy could be in trouble, an invitation to the Italian Prime Minister has been heard. This again could rock the EU and the global economy.
We never know what tomorrow will bring (or the next hour even). If you are looking to refinance or purchase and are ready to lock, don't hesitate, waiting may save you and 1/8, but it could cost you a 1/2. Is it worth the stress? Lock now and sleep peacefully tonight.

Thursday, November 3, 2011

You Gotta Know When to Hold'em...Know When to Fold'em

The Equity markets will have a roller coaster of a day, boy doesn't that sound familiar. Our own economic issues aside, we are a global economy, and choices being made in the European Union, China, Japan, etc...have effects that are wide reaching. The referendum vote that PM of Greece had wanted may or may not happen. If the Greek people vote down the plan or vote to remove themselves from the EU, The EU will not give any assistance, "not one penny," to help Greece in the coming months of economic uncertainty. Who will? Will anyone? Is someone going to finally say, you made your bed, now lie in it? Only time will tell on this front.
But what does that make for the Wall Street investor, or the main street investor, or the first time home buyer trying to figure out what is best for their future with the mortgage they are choosing. Here is my advise, at least to the soon to be home owner. Rates are terrific now. Instead of waiting a day, week or month or two, take advantage of what the market is currently handing to you. The purchase transaction will be a lot less stressful, if you lock in your rate and know that it is a terrific rate, a rate that wasn't available 1 year ago, 5 years ago...ever.
Just like today, tomorrow will be volatile and another/different roller coaster. Take control and step off the coaster!

Wednesday, November 2, 2011

Could there be a QE3?

The MBS market has had three great days on the market gaining over 100 points. This morning it opened weaker, but since has started to pare some of its losses. The stock market has taken a beating as of late and is holding onto a modest gain right now. The Fed speaks today about the economy and its thoughts on where it is headed and what they should do about it. The rumor mill is all a buzz saying we could see a QE3. I am not sure that is a great answer, I feel that my none of my decedents, no matter how many greats you put in front of their names will be able to get out of the hole we are digging right now.
My concern is not only the hole we are digging, but I believe Greece is the tip of the iceberg in Europe and who is going to be able to save us all? China is on hold...they can't be the white knight for everyone.
There is a silver lining, home prices and mortgage rates are significantly lower than we have ever seen. Those who are working and are able to pay rent everyday, should really look at the idea of purchasing a home. There are loans available with little to no down payment if you fit the guidelines. A home is an amazing investment and for those who have the dream of one day owning their own home, now is the time to try and make that dream a reality.
If your credit isn't perfect, don't let that stop you, talk to a professional (like me) to find out what you need to do, and get yourself on the right track. Procrastinating just makes everything worse. (A friend of mine told a group that yesterday, and she was so right!)
I'll keep you posted on the QE3 announcement...