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Mortgage Rates, News, and Tips

Holly

TODAYS MARKET UPDATE

Another gift for the Bond market arrived this morning from overseas...and the Bonds good fortune appears to be endless.  Fears of the escalating conflict in Korea are weighing on Stocks and helping Bonds.  South Korea has accused North Korea of sinking their naval ship back in March, and has responded by putting economic and trade sanctions in place.  North Korea in turn responded by putting their 1 Million plus military troops on high alert for potential action.  Should this turn into an all out war, it would be awful...and obviously, world resources are spread very thin as is.  And let's not forget that South Korea does have nuclear weapons.

In 1979, the rock & roll group "The Clash" had the hit song "Spanish Bombs"...and this morning, the newswires were hit with some Spanish Bombs about the ongoing problems in their banking system.  As you know we have written many times that while Greece and Portugal have many problems, Spain is a much greater concern because of its size.  And now banks are scrambling to merge, in an effort to avoid bankruptcy.  This news is pressuring the Euro lower, and as we explained in last Tuesday's Update, a lower Euro is boosting Bond prices here.

And it looks as if there is renewed concerns on China "tapping on the brakes", in an effort to avoid excessive inflation or the formation of asset bubbles.  But in this small world we live in, both the US and even more so Europe will be impacted as trading partners.  That's yet another drag on the Euro and US Stocks this morning.

 

MORTGAGE REFINANCE OPPORTUNITIES

Is your lender giving you a call when rates fall? Are they offering you a free analysis to see if rates are low enough and make sense for you to refinance?

There opportunity is here now and it could be a brief window that we can take advantage of. Especially it you are looking for a shorter term loan, rates are phenomenal. I have seen them under 4%. If your lender isn't call YOU then you should be looking for a new lender. Call or email me if you would like a FREE analysis of your motgage. Let's see what we can save you.

 

TIP OF THE DAY

Did you know if you puchase a cottage or another home far enough away, the mortgage is treated as a normal purchase transaction and there are no extra fees. Now could be the time to purhcase that cottage up north w/ as little as 5% down.

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Holly

Market Update

Treasuries and mortgages opened a little better this morning with the key stock indexes slightly better at 9:00; the DJIA +31, 10 yr note +2/32 and mortgage prices +1/32 (.03 bp). No economic data this morning until 10:00 when April pending home sales hit,  but the Challenger report said job losses are mitigating but still no strong new hiring. Later this afternoon (2:00 pm) May auto and truck sales. At 9:30 the DJIA opened +45, the 10 yr -1/32 and mortgage prices at 9:30 -2/32 (.06 bp).

 

At 10:00 April pending home sales, expected to have increased 5.0% motivated by the rush to secure the expiring tax credit, increased 6.0%. Yr/yr sales increased 22.4% frm Arp 2009; the NAR saying 1 million home sales resulting from the tax credit. NAR is concerned that problems with closings by the June final cut may cause some sales to evaporate and is going to ask Congress to extend the closing deadline. The stock indexes got a slight bump higher, interest rate markets no change on the initial reaction to the report.

 

The stock market was doing well yesterday, quiet through most all of the session----until---the Justice Dept said it was launching criminal investigations over the oil spill. That hit at about 3:25, after that energy stocks fell and took the DJIA from +30 when the news hit to close -112.61 on the day. BP stock fell hard and is now down 40% from the levels prior to the spill. This morning in the absence of any other news most of the chatter was about the spill and the implications for BP and future off-shore drilling in the US.

 

The euro currency continues to drive US markets; this morning it is weaker again, but only slightly,  and in turn the stock market is starting better, but like yesterday the trade is thin with little enthusiasm in either direction. Trading or tracking the stock market these days all comes down to the final hour; everything between the open at 9:30 and until 3:00 we consider subject.

 

The May employment report on Friday, always the key data point of each month, is the main focus for the rest of the week. Estimates are for an increase of 540K jobs; most of which will be temp census workers. The estimate for the unemployment rate is 9.8% down from 9.9% in April. Markets won't be too consumed with the big increase unless there is a substantial number of new private jobs. Tomorrow the ADP estimate on private jobs is expected to be an increase of 56K.

 

Nothing new; the rest of the day for the bond and mortgage markets will focus on the equity market movement and how the euro currency trades. As long as the euro continues to decline the stock market will struggle on concerns that Europe's economy will slow and take away some of the export business from US companies. 

 

A double dip, or a normal correction? The debate continues. Presently whichever side you take there are valid points; until markets develop a consensus the stock and interest rate markets are likely to churn in a narrow range with a momentary bias on the bearish side. Friday's employment report may provide enough evidence to set the next direction in stocks and in the bond and mortgage markets.  

 

TIP OF THE DAY /
MORTGAGE REFINANCE OPPORTUNITIES

Did you know that there are new opportunites to refinance even if you tried before. Fannie mae and Freddi mac have made a streamline refiance available for most of there conventional loans. Some may have appraisal waivers and some income waivers. Call today to see if you are eligable.

 

 

 

 

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