Rate Watch 9/19/08: Carefully Floating

This is an incredible day at the end of a VERY incredibly volatile week! Today, there have been 3 enormous announcements which are going to have a HUGE impact on our financial markets. Yesterday there was a modern day (21st century) "Run on the Bank", with $180 Billion withdrawn from Money Market Funds. Today, the Fed and SEC have come to the rescue with the following announcements which are sure to improve the Financial Markets, Stocks and Bonds alike, over the LONG TERM. Here are the 3 announcements: 1) The US Government will Guarantee ALL Money Market Funds! 2) The Fed will create a marketplace for all of the illiquid Mortgage debt! Absolutely Brilliant! 3) There is now an SEC ban on short selling of 799 financially related stocks (this is in place until October 4th and can be extended for 30 day increments as needed). For now I recommend Carefully Floating as we ride this wave of great news. The market is going to be exceptionally volatile today, so I will watch closely and advise you if we have a turn for the worse in the Bond Market.

Rate Watch: Carefully Floating

More wild ride today! The Bond market opened slightly worse to the improvement in Stocks. Oil went to $98/ barrel, stocks rallied and Bonds were at the worst point of the day and I recommended Locking ahead of a midday loan price worsening. Stocks rally for the rest of the day and soar to a 400 point increase. But in the light of all of this movement, Bonds ended the day EXACTLY where they had started which was at 101.00! Lot's of movement from open to close, but we ended up in exactly the same place! Bonds are currently trading in a BROAD range of almost 100 bps (you should see the Bond Charts, it's unbelievable!)! On the technical side, bonds are trading between a ceiling of 101.47 and a floor of 100.50 (ended the day at 101). Anything is possible in this volatile market and I continue to recommend floating to see what direction we can see in tomorrow's opening.

Rate Watch: Market Close

I don't normally give a Market Close report, but today deserves a mention of the wild ride we are experiencing! Bonds have made up half of their loss from yesterday, up 58 bps (up 44 bps since we received rate sheets) (we lost 96 yesterday) and the Stock market is looking for a life preserver (off 239). Here is a quote from a Bond Trader who has been in the market since 1969: "I have never seen a market like we are in right now". VERY VOLATILE! With the current movement in the market and the financial news, I continue to recommend Floating.

Rate Watch: Cautiously Floating

Bonds are trading modestly higher (higher price, lower yield and lower interest rates) after the Fed's loan to AIG to prevent it's Bankruptcy, and the Stock market is off 500 points so far today. Stocks and Bonds are digesting all of the news from yesterday as the Fed left the discount rate the same, and today's report of lower new housing starts. For now, I recommend cautiously floating as Bonds improve slowly from yesterday's downward market movement.

Investment Property Financing Update: 9/16/08

Not such good news in the investor financing arena.

We have been receiving rate adjustors from our lenders of an additional 1% cost for investment property financing at 80% and 90% loan to value. The rate hits are not as severe at 70%.

We received the last investor increase today (of our 8 we place loans with), so from here on out it is going to be more expensive to finance investment property (for the time being, anyway!).

Rate Watch 9/16/08: Cautiously Floating

Up until today there really was not a worry that the Fed would cut the Fed Funds rate at their meeting today, but with the dire circumstance of near Bankruptcy of AIG (an insurance company operating in 160 countries!), the Fed may cut the rate by .25% to .50% today to give a calm in the the face of a storm. If this happens, bonds will not like this because of the inflationary pressures that it puts on bond prices. Stocks are retreating early in trading and is helping Bonds stay at the flat line, to slightly off, since the markets opened. Stay tuned, I may be reversing my recommendation to Lock this afternoon after we see what the Fed does with the Discount Rate. This really is a wild ride we are on right now!

Rate Watch 9/15/08: Float

Just another Moday? Not by a long shot! Remember a whole week ago? We had the Fannie/Freddie Government backing announcement? Today is loaded with just as much good news for improvement in Mortgage Bonds as last week. Stay tuned and my advice is to Float for now, and I will guide you on our timing for locking in possibly the best mortgage rates this year!

Buyer Thank You

"My loan was quick and hassle free and Marty was honest and worked with me." Jason S., Loan#14449-003-99

Buyer Thank You

"I liked that Marty was associated with my Real Estate Agents."Eric H. Loan#14251-003-99

Buyer Thank You

"Communication on the Loan Status from Marty was excellent and the service was much faster than expected." James and Karen B., Loan#15299-003-99

Buyer Thank You

"Marty did an excellent job of explaining the entire loan process to me and the excellent personalized service. Marty and his processing team were the best part of the loan process." Candice W. Loan#16033-003-99

Buyer Thank You

"Excellent job simplifying the loan process and meeting our closing date. The best part of the loan process was working with Marty!" Daniel and Wendy M., Loan#15275-003-99

Bridal Fair-Fall 2008-Union Station

The 2008 Fall Bridal Fair at Union Station in Ogden was the gathering spot for Bride's, their Mom's, and even some of the Groom's!

In the two years that I have been involved in the Bridal Fair, this was the one which I was able to deliver the most exciting news about First Time Home Buyer BENEFITS yet!

Three of the highlights available to First Time Home Buyer's include:

• $7500 First Time Homebuyer Tax Credit!
• Utah Housing 100% Financing is still here!
• Best Mortgage Rates in 2008!

Go to the right side of my Blog, look for LABELS and search for "Planning for Success" and "Loan Program Updates". Here you will find information and tools for First Time Home Buyer's!