A Thanksgiving-like helping of economic news was served this morning and as a result, Mortgage Bonds are a trading a little higher. Durable orders were much lower than expected, while initial jobless claims were actually better than expected.
Inflation as measured by the Core PCE was tamer than estimates. Chicago PMI fell and Consumer Sentiment is still in the dumps. New Home Sales dropped to the lowest levels since 1991 but inventories have fallen 25.7%, the biggest drop since the government began tracking the data in 1963.
Yesterday's Fed announcement that it will be purchasing Mortgage Backed Securities from Fannie Mae, Freddie Mac and Ginnie Mae should help lower home loan rates over time. For today I will recommend to Float.
Wednesday, November 26, 2008
Tuesday, November 25, 2008
Daily Market Watch for 11-25-08
The mortgage industry received some big news this morning that will likely overshadow the Gross Domestic Product and Consumer Confidence reports today.
One of the biggest news items is the Fed's announcement that it will purchase $600 Billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae. This should help increase the availability of credit, while also lowering fixed mortgage rates. In addition, the Fed will allocate $200 Billion to create liquidity in the auto, student, and small business loan markets.
News of these plans is already helping push mortgage rates lower, as Mortgage Bonds have had a strong rally and appear headed for their price highs of 2008. For now, I recommend floating to see how much more the pricing improves.
One of the biggest news items is the Fed's announcement that it will purchase $600 Billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae. This should help increase the availability of credit, while also lowering fixed mortgage rates. In addition, the Fed will allocate $200 Billion to create liquidity in the auto, student, and small business loan markets.
News of these plans is already helping push mortgage rates lower, as Mortgage Bonds have had a strong rally and appear headed for their price highs of 2008. For now, I recommend floating to see how much more the pricing improves.
Wednesday, November 19, 2008
Daily Market Watch for 11-19-08
For the 11th straight day Mortgage Bonds have touched the 200-day Moving Average. After a higher open, prices have bounced around and are now trading just above this important level.
On the news front, Overall Consumer Price Index fell a record -1.0%, thanks to an 8.6% decline in energy prices. Housing Starts also fell 4.5% in October. And yesterday, Mortgage Bonds bounced higher after news that giant hedge fund Paulson & Co. has started buying beaten-up Mortgage Bonds in its Advantage Plus fund.
The 200-day Moving Average is an amazing level to watch. Mortgage Bonds dipped below this level earlier today and now have settled right above this important floor. I recommend carefully floating for now, as we watch to see if Mortgage Bonds can build on the recent positive momentum....More
On the news front, Overall Consumer Price Index fell a record -1.0%, thanks to an 8.6% decline in energy prices. Housing Starts also fell 4.5% in October. And yesterday, Mortgage Bonds bounced higher after news that giant hedge fund Paulson & Co. has started buying beaten-up Mortgage Bonds in its Advantage Plus fund.
The 200-day Moving Average is an amazing level to watch. Mortgage Bonds dipped below this level earlier today and now have settled right above this important floor. I recommend carefully floating for now, as we watch to see if Mortgage Bonds can build on the recent positive momentum....More
Monday, November 17, 2008
Daily Market Watch for 11-17-08
Bad news continues to infiltrate the market today, as Japan becomes the latest economy to fall into a recession and fears of a worldwide recession have forced Stocks around the globe lower.
In other news, banking giant Citigroup announced it will lay off 50,000 people on top of the 23,000 jobs they cut earlier this year. Additionally, Industrial Production showed a 1.3% rise; however, September's was revised lower to -3.7%--making it the largest monthly drop in industrial production in over 60 years.
Currently, Mortgage Bonds are near unchanged levels and linger near the 200-day Moving Average for the 9th consecutive trading session. For now, I recommend floating, but be ready to lock if pricing drifts down...more CLICK HERE
In other news, banking giant Citigroup announced it will lay off 50,000 people on top of the 23,000 jobs they cut earlier this year. Additionally, Industrial Production showed a 1.3% rise; however, September's was revised lower to -3.7%--making it the largest monthly drop in industrial production in over 60 years.
Currently, Mortgage Bonds are near unchanged levels and linger near the 200-day Moving Average for the 9th consecutive trading session. For now, I recommend floating, but be ready to lock if pricing drifts down...more CLICK HERE
Friday, November 14, 2008
Daily Market Watch for 11-14-08
Mortgage Bonds are higher this morning after Retail Sales numbers fell for the fourth straight month and plunged to their worst level since record keeping began in 1992. This is important information because it indicates a bad outlook for the retail industry overall and comes as we head into what looks to be the worst holiday shopping season in a long, long time.
In other news, Fed Chairman Ben Bernanke spoke in Germany today, indicating that central bankers worldwide are prepared to take additional actions to unfreeze global credit markets.
Earlier this morning, Bonds opened above the 200-Day Moving Average, but have since dipped back below this important level. For now, I recommend floating as we watch to see how Bonds react to the market news. However, if the situation changes, I will keep you posted.
For Detailed video CLICK HERE
In other news, Fed Chairman Ben Bernanke spoke in Germany today, indicating that central bankers worldwide are prepared to take additional actions to unfreeze global credit markets.
Earlier this morning, Bonds opened above the 200-Day Moving Average, but have since dipped back below this important level. For now, I recommend floating as we watch to see how Bonds react to the market news. However, if the situation changes, I will keep you posted.
For Detailed video CLICK HERE
Thursday, November 13, 2008
Daily Market Watch for 11-13-08
Bonds are facing some selling pressure this morning, as Stocks are attempting to stabilize and move higher after three days of hard losses. The modest rally in Stocks is a bit puzzling when you consider the continuing barrage of bad news, including lower future earnings guidance from Wal-Mart and Intel as well as the worst initial unemployment claims data since 2001.
In other news, a $10 Billon auction in 30-year Treasury Bonds will hit the market at 1 pm Eastern Time. If the auction is not well embraced, Bonds could face additional selling pressure.
Currently, both Stocks and Bonds continue to trade near important support levels. I recommend floating for now, but I will let you know if Bonds fall below support and a change in course is needed...more
In other news, a $10 Billon auction in 30-year Treasury Bonds will hit the market at 1 pm Eastern Time. If the auction is not well embraced, Bonds could face additional selling pressure.
Currently, both Stocks and Bonds continue to trade near important support levels. I recommend floating for now, but I will let you know if Bonds fall below support and a change in course is needed...more
Wednesday, November 12, 2008
Daily Market Watch for 11-12-08
Mortgage Bonds are trading higher so far this morning, in reaction to continued weakness in the Stock market.
Adding to the negative sentiment in Stocks this morning are the poor earnings outlooks for Best Buy and Macy’s. These negative outlooks come right on the heels of Circuit City closing 150 stores. Suffice it to say, this holiday season doesn’t look good for retailers.
There are no economic reports due out today, but at 1 pm Eastern Time the Treasury is set to auction off $20B in 10-Year Notes. If this auction is not well received, it could temper the current rally in Bonds. For now, I recommend floating as I continue to monitor the direction of Stocks and the reaction of Bond prices.
For a detailed report CLICK HERE
Adding to the negative sentiment in Stocks this morning are the poor earnings outlooks for Best Buy and Macy’s. These negative outlooks come right on the heels of Circuit City closing 150 stores. Suffice it to say, this holiday season doesn’t look good for retailers.
There are no economic reports due out today, but at 1 pm Eastern Time the Treasury is set to auction off $20B in 10-Year Notes. If this auction is not well received, it could temper the current rally in Bonds. For now, I recommend floating as I continue to monitor the direction of Stocks and the reaction of Bond prices.
For a detailed report CLICK HERE
Tuesday, November 11, 2008
Did you Know 11-11-08
I invite you to view our monthly "Did you Know" by numbers...CLICK HERE
Sincerely,
John Franco
Credit Expert
Aggressive Credit Restoration Services
Office: 661.310.1514
Fax: 661.310.0447
www.ficorepair911.com
Blog: www.johnfranco.com
FOR VIDEO UPDATES VISIT
www.videosbyjohn.com
Sincerely,
John Franco
Credit Expert
Aggressive Credit Restoration Services
Office: 661.310.1514
Fax: 661.310.0447
www.ficorepair911.com
Blog: www.johnfranco.com
FOR VIDEO UPDATES VISIT
www.videosbyjohn.com
Monday, November 10, 2008
What is a Bond Coupon Rollover?
Every month the coupon "rolls over". In this case, this month's coupon is closed out and all new loans are placed into next month's coupon.
Think of it as the time they mature. The recently closed issue, loans that are satisfied 30 years from now, are packaged and sold. Because the seller or wholesale lender now has an additional 30-days, it is like having a 30-day extension on their rate lock.
John Franco
For Video Clips CLICK HERE
Think of it as the time they mature. The recently closed issue, loans that are satisfied 30 years from now, are packaged and sold. Because the seller or wholesale lender now has an additional 30-days, it is like having a 30-day extension on their rate lock.
John Franco
For Video Clips CLICK HERE
Mortgage Update for 11.10.08
Stocks are higher this morning on the heels of a Stock rally in China that was ignited by the Chinese government's plan for a $586 Billion stimulus package. Should Stocks hold or add onto their gains, it will likely add selling pressure to Bonds. Also adding selling pressure to Bonds this week will be auctions of Treasury Notes today and Wednesday.
In other news, the poor economy is being felt across the board, as Circuit City filed for Chapter 11 Bankruptcy and the department store Nordstrom is reporting that its growth rate is down 16%. Additionally, the automobile industry’s woes continue, as Deutsche Bank downgraded shares of General Motors from hold to sell, giving a price target of $0...yes, $0.
Currently, Bonds sit very close to both the 50 and 200-day Moving Averages. For now, I recommend floating, but I will keep you posted of any changes. The Bond market closes early today at 2 pm Eastern Time and will be closed tomorrow for Veterans Day. Stock markets, however, will conduct their normal business hours this week.
For a detailed video clip CLICK HERE
In other news, the poor economy is being felt across the board, as Circuit City filed for Chapter 11 Bankruptcy and the department store Nordstrom is reporting that its growth rate is down 16%. Additionally, the automobile industry’s woes continue, as Deutsche Bank downgraded shares of General Motors from hold to sell, giving a price target of $0...yes, $0.
Currently, Bonds sit very close to both the 50 and 200-day Moving Averages. For now, I recommend floating, but I will keep you posted of any changes. The Bond market closes early today at 2 pm Eastern Time and will be closed tomorrow for Veterans Day. Stock markets, however, will conduct their normal business hours this week.
For a detailed video clip CLICK HERE
Friday, November 7, 2008
Mortgage Update for 11.7.08
The Labor Department's Jobs Report came in much worse than analysts expected, with 240,000 jobs lost in October. In addition, the Unemployment Rate jumped to its highest level since 1994.
In market news, Stocks are coming off their worst back-to-back days since the 1987 Stock Market crash. Although Stocks opened higher this morning, they could be in for more of a decline as today's poor Jobs Report sinks in. This could create selling pressure on Stocks, which may help bonds improve.
Currently, prices are battling a strong ceiling of resistance. Should prices break out above current levels, it would be very bullish. Therefore, I recommend floating, even though prices are modestly weaker right now and may even worsen slightly before bouncing.
For a detailed video clip CLICK HERE
In market news, Stocks are coming off their worst back-to-back days since the 1987 Stock Market crash. Although Stocks opened higher this morning, they could be in for more of a decline as today's poor Jobs Report sinks in. This could create selling pressure on Stocks, which may help bonds improve.
Currently, prices are battling a strong ceiling of resistance. Should prices break out above current levels, it would be very bullish. Therefore, I recommend floating, even though prices are modestly weaker right now and may even worsen slightly before bouncing.
For a detailed video clip CLICK HERE
How to Effectively Raise your Credit Score. Step 2 of 8.
Within the delinquent accounts on your credit report, there is a column called “Past Due”. Credit
score software penalizes you for keeping accounts past due, so Past Dues destroy a credit score. If you see an amount in this column, pay the creditor the past due amount reported.
Click for a VIDEO CLIP
score software penalizes you for keeping accounts past due, so Past Dues destroy a credit score. If you see an amount in this column, pay the creditor the past due amount reported.
Click for a VIDEO CLIP
Thursday, November 6, 2008
How to Effectively Raise your Credit Score. Step 1 of 8.
1. GET RID OF YOUR COLLECTION ACCOUNTS.
Did you know that paying a collection account can actually reduce your score? Here’s why: credit scoring software reviews credit reports for each account’s date of last activity to determine the
impact it will have on the overall credit score. When payment is made on a collection account,
collection agencies update credit bureaus to reflect the account status as “Paid Collection”. When this happens, the date of last activity becomes more recent. Since the guideline for credit scoring software is the date of last activity, recent payment on a collection account damages the credit
score more severely.
This method of credit scoring may seem unfair, but it is something that must be worked around when trying to maximize your score. How is it possible to pay a collection and maximize your score? The best way to handle this credit scoring dilemma is to contact the collection agency and explain that you are willing to pay off the collection account under the condition that the all reporting is withdrawn from credit bureaus.
Request a letter from the collector that explicitly states their agreement to delete the account upon receipt/clearance of your payment. Although not all collection agencies will delete reporting, removing all references to a collection account completely will increase your score and is certainly worth the involved effort.
For more info CLICK HERE
Did you know that paying a collection account can actually reduce your score? Here’s why: credit scoring software reviews credit reports for each account’s date of last activity to determine the
impact it will have on the overall credit score. When payment is made on a collection account,
collection agencies update credit bureaus to reflect the account status as “Paid Collection”. When this happens, the date of last activity becomes more recent. Since the guideline for credit scoring software is the date of last activity, recent payment on a collection account damages the credit
score more severely.
This method of credit scoring may seem unfair, but it is something that must be worked around when trying to maximize your score. How is it possible to pay a collection and maximize your score? The best way to handle this credit scoring dilemma is to contact the collection agency and explain that you are willing to pay off the collection account under the condition that the all reporting is withdrawn from credit bureaus.
Request a letter from the collector that explicitly states their agreement to delete the account upon receipt/clearance of your payment. Although not all collection agencies will delete reporting, removing all references to a collection account completely will increase your score and is certainly worth the involved effort.
For more info CLICK HERE
Mortgage Update for 11.6.08
Mortgage Bonds are trading lower this morning after enjoying a nice three-day rally higher. This comes on the heels of big news from overseas in which both the Bank of England and the European Central Bank cut their benchmark interest rates. The good news is that these cuts should have a positive effect on the US Dollar and on Oil prices.
Tomorrow, the Labor Department releases its Jobs Report for October, and the markets are already expecting a lousy report. Since Bonds are trading above a dual level of support and given the recent upswing, I recommend floating into tomorrow’s Jobs Report. I will let you know if anything changes
For video clips CLICK HERE
Tomorrow, the Labor Department releases its Jobs Report for October, and the markets are already expecting a lousy report. Since Bonds are trading above a dual level of support and given the recent upswing, I recommend floating into tomorrow’s Jobs Report. I will let you know if anything changes
For video clips CLICK HERE
Wednesday, November 5, 2008
Congratulations to Obama!
Well, needless to say the election was a landslide...Honestly, I kind of felt it was headed in that direction. I truely hope that he will live up to his WORD and help get this great Country back on track. Farewell to George W. Bush, love him or hate him, really, who would want to be in his shoes. The same goes for Obama, let's pray that he can ge the job done. Let's stick together as American's, fight and strive to be the great America that we are. God Bless to you all!
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