Happy Thanksgiving

Happy Thanksgiving to all my friends. May you heart be filled with joy and your holiday be blessed with family and friends

PMI files BK

Mortgage Insurer PMI Files Bankruptcy
The PMI Group, Inc. says it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. According to PMI, the move is a direct result of the seizure of its subsidiaries PMI Mortgage Insurance Co. and PMI Insurance Co. by the Arizona Department of Insurance on October 20, 2011. PMI sought to overturn the regulator’s seizure of its mortgage insurance operations, but that motion was denied on Friday.

November 2011 : FHA Loan Limits Raised To $729,750; Conventional To Remain At $625,500. Call me if you need to refinance your home! Rates are very competitive today! 702-370-2016 Greg

Updated Bond Information

MBS prices are down a bit on the session (FNMA 3.50 -4.5/32) on decent data, as we still have no clear picture of resolution in the EU financial crisis. Initial Jobless Claims came in a bit better than expected (390k vs. 400k est.), the Trade Balance was more narrow than anticipate (-43.1B vs. -46B est.), and Import Prices were tame (-0.6%). Stocks are in positive territory today (Dow +66.15, S&P +4.90), after an awful day yesterday, which saw the down plummet almost 400 points, which was the worst single-session loss in two months. Ongoing issues in the EU really pushed the markets around yesterday, but news is light this morning. Expect any news out of Europe to spark movement. Absent a bombshell from the EU, we may see today’s auction garner some attention. Today, we have a $16B 30yr auction (11am MT). As we know, the Fed is trying to lower long-term interest rates though their Operation Twist, so this auction may tell us a bit about how well that plan is going. So far, the operation has failed to do much to lower mortgage rates.

Tomorrow, Friday, 11/11 has only Consumer Sentiment (est. 61.3), so expect the headlines and the equity markets to drive mortgage prices.
If your looking for a new loan, feel free to contact me at 702-370-2016 Greg Corpodian

Updated Bond Information

MBS prices are down a bit on the session (FNMA 3.50 -4.5/32) on decent data, as we still have no clear picture of resolution in the EU financial crisis. Initial Jobless Claims came in a bit better than expected (390k vs. 400k est.), the Trade Balance was more narrow than anticipate (-43.1B vs. -46B est.), and Import Prices were tame (-0.6%). Stocks are in positive territory today (Dow +66.15, S&P +4.90), after an awful day yesterday, which saw the down plummet almost 400 points, which was the worst single-session loss in two months. Ongoing issues in the EU really pushed the markets around yesterday, but news is light this morning. Expect any news out of Europe to spark movement. Absent a bombshell from the EU, we may see today’s auction garner some attention. Today, we have a $16B 30yr auction (11am MT). As we know, the Fed is trying to lower long-term interest rates though their Operation Twist, so this auction may tell us a bit about how well that plan is going. So far, the operation has failed to do much to lower mortgage rates.

Tomorrow, Friday, 11/11 has only Consumer Sentiment (est. 61.3), so expect the headlines and the equity markets to drive mortgage prices.
If your looking for a new loan, feel free to contact me at 702-370-2016 Greg Corpodian

Mortgage Rates

MBS prices are up slightly (FNMA 3.50 +2/32) on a day without data. Not that data much matters lately. The drama slowly unfolding in the EU is really what seems to be driving prices right now. There is a note auction today, so we may see some reaction there. The US Treasury will sell $32B in 3yr notes today at 11am MT. Expect a strong auction to potentially spur a bond rally (rates down), while a poor showing may send rates higher. Otherwise, watch the headlines. There are some Fed Presidents and EU Finance Ministers speaking today. Add this to the other news coming from Europe, and we will likely see some more volatility. In fact, expect volatility to be rampant for the rest of the year potentially.

Tomorrow, Wednesday, 11/9 has Wholesale Inventories (est. 0.5%) and the second note auction of the week, a 10yr auction, set to go off at 11am MT. Wholesale Inventories is typically not a market moving report, so we can likely ignore it, but the auction may be noteworthy. Watch today’s auction to set expectations for the new two (Wed and Thurs).

Mortgage Rates

MBS prices are up slightly (FNMA 3.50 +2/32) on a day without data. Not that data much matters lately. The drama slowly unfolding in the EU is really what seems to be driving prices right now. There is a note auction today, so we may see some reaction there. The US Treasury will sell $32B in 3yr notes today at 11am MT. Expect a strong auction to potentially spur a bond rally (rates down), while a poor showing may send rates higher. Otherwise, watch the headlines. There are some Fed Presidents and EU Finance Ministers speaking today. Add this to the other news coming from Europe, and we will likely see some more volatility. In fact, expect volatility to be rampant for the rest of the year potentially.

Tomorrow, Wednesday, 11/9 has Wholesale Inventories (est. 0.5%) and the second note auction of the week, a 10yr auction, set to go off at 11am MT. Wholesale Inventories is typically not a market moving report, so we can likely ignore it, but the auction may be noteworthy. Watch today’s auction to set expectations for the new two (Wed and Thurs).

Mortgage Rates Near All Time Lows!

Mortgage rates plunged yesterday as the financial markets reacted to a couple of pieces of bad news. The first item was that the Greek Prime Minister is going to ask the country to vote on a potential bailout package. The package is extremely unpopular in Greece, and is unlikely to be approved via referendum. The second piece of bad news was the implosion of financial firm MF Global. The firm filed for bankruptcy yesterday, the ninth largest bankruptcy of all time. It current trends continue, we could see mortgage rates test their all-time lows this week.

Are you a renter looking to take advantage of today’s low rate environment? Is the lack of money for a down payment the only thing between you and homeownership? You may want to look into an FHA mortgage. Many first time homeowners take advantage of FHA loans because they only require a minimum down payment of 3.5% of the purchase price of the house. In comparison, many traditional lenders require down payments of 20% or more, and it can take years for the average person to save that much money. Call Greg Corpodian at 702-370-2016 if you want to refinance or purchase a new home!