Image by Getty Images via Daylife Unemployment numbers rock the market and kill notions of "Green Shoots." Mike Shedlock does a nice job of comparing and contrasting the two camps in Battle Lines Form Over "Son of Stimulus". The housing market certainly isn't feeling any relief from the first stimulus (little of which has hit the street) and may lack the confidence a second one will improve the outlook. PIMCO tells us these housing prices are headed downhill for the next 2 years! Unfortunately, … [Read more...]
Are We in an Economy Where Low Mortgage Rates Don't Matter?
March 27, 2009 By 1 Comment
Image via Wikipedia 24/7 Wall Street presents and interesting angle on the role of mortgage rates in recovering the housing market. Are we in an economy where factors and anxiety around unemployment and investment make it such that mortgage rates are too much at any cost? While some data shows that housing may be finding a bottom, it is likely that very few people are willing to gamble their own money that the perception is true. If unemployment rises, housing prices could continue to fall. If foreclosures … [Read more...]
Small Bank Bailouts, The Great Recession, JP Morgan Loan Modifications, Global ZIRP, PMI Losses, GM No Bailout Merger
November 3, 2008 By Leave a Comment
Small Bank Bailouts Financial market calamity was narrowly averted today as Farmers National Bank of Emlenton is expected to get a much needed capital injection from the US government. William Marsh, CEO led with this, "they were giving out free stuff"-type quote in the WSJ: "It seemed like the consensus in the industry was...go out and get this," said William Marsh, president and chief executive of Farmers National Bank of Emlenton, in Emlenton, Pa. Mr. Marsh said his bank is healthy and viable … [Read more...]
Mortgage Rates, Misery Index, Foreclosures, Case Shiller, OPEC, Credit Default Swaps
October 29, 2008 By Leave a Comment
Mortgage Rates Rise as US Market Soars We get a big, even historic, upward bounce in the US stock market. Meanwhile mortgage rates are taking a negative bounce. The interesting part is that one of the stated US government bailout objectives was to preserve or even increase mortgage affordability. However, these same interventions into markets are causing precisely the opposite (possibly short-term) effect: With so much government debt guarantees in the bond market yield spreads between mortgage bonds … [Read more...]
Yields Spread Mortgage Rates Rise, Homebuilders Housing Fix, Soros on Denmark Mortgage Market, Your $700 Billion at Work
October 28, 2008 By Leave a Comment
Yields Spread and Mortgage Rates Rise Fannie, Freddie, and Ginnie mortgage bonds continue to pull away from US Treasuries. The difference between yields on Washington-based Fannie's current-coupon 30-year fixed-rate bonds and 10-year U.S. Treasuries rose about 21 basis points to 224 basis points as of 4:30 p.m. in New York, data compiled by Bloomberg show. That's up from 162 basis points, or 1.62 percentage point, on Oct. 20. "It is the deleveraging,'' Mohamed El-Erian, the co-chief executive officer … [Read more...]
Asian Markets Down, Where is the Bottom, Rethinking Capitalism, and JP Morgan Will Not Lend
October 27, 2008 By Leave a Comment
Asian Markets Take Another Dip Asian markets continue to tumble on real fears of global recession. Compounded by the already tightly intertwined system of banking and commercial equity positions. Much of these riskier equity positions, unlike US Banks are counted toward their regulatory capital requirements. This latest Asian market plunge is signalling another dangerous day on Wall Street. How many bullets can the market dodge? If we do get a real free fall what do you do? By the way don't overlook … [Read more...]
Mortgage Rates and Applications Up, Markets Down, Hedge Funds on the Run, Housing Prices–Still Down
October 16, 2008 By Leave a Comment
Mortgage rates: Volatile, Lock Short, Float Long MBA reports mortgage applications up despite historic climb in mortgage rates. Overnight foreign markets take the same tumble that US markets felt yesterday. Look for another messy trading day. Here comes the run on hedge funds--$43 billion in September. JPMorgan, Wells Fargo, State Street--report profits, Citigroup and Merrill Lynch show losses. Bernanke says long recovery ahead. Consumers skeptical of bailouts' effectiveness. Bottom line to … [Read more...]