ARCHIVED BLOG POSTS
2009
2
Comments
Please enjoy this original new year poem. I hope that each of you achieves your goals for the year. Wonder and amazement abound Through the air rushes the sound Church bells ring for all to hear As heralds of the coming new year What will it bring this new year to come? Will it bring joy for...
12/31/2009
0
Comments
Mortgage backed securities (MBS) closed down 9 basis points today at 99.84 just above support at 99.75 and just under 100 basis points below resistance at the 200 day moving average. Due to low volume created by the holidays, markets were extremely volatile today. One large institutional trade...
12/31/2009
1
Comments
Remember back in the early years of this century when radio ad pitchmen were saying "Rates as low as 1%."? It was, in fact true, that banks were offering rates as low as 1 per cent but they were frought with danger. Banks were offering option Arms which were more accurately called negative amor...
12/30/2009
0
Comments
Mortgage backed securities (MBS) closed up 12 basis points today at 99.94 above support at 99.75 but still well below resistance offered by the 200 day moving average almost 100 bps above. Good results from the Treasury auction buoyed bond prices but were not enough impetus to push them much hig...
12/30/2009
0
Comments
Japanese Candlestick charting is a system of charting movements in markets over time which had its origins in the Japanese rice trade centuries ago. Adapted for western markets in the early 1900s, the system takes into account the opening price, the highs and lows of the day and the closing pric...
12/23/2009
1
Comments
Mortgage backed securities (MBS) closed up 9 basis points at 100.09 wedged between resistance at 100.18 and support at 100.06. The Japanese Candlesticks indicate and inverted hammer pattern. This pattern is generally a harbinger of improved pricing for the short term. So we may be spared from...
12/23/2009
0
Comments
Mortgage backed securities (MBS) closed down a whopping 62 basis points today at 99.94 below all moving averages and two other levels of support. This could represent the beginning of the end for low interest rates. This is the second day in a row that MBS bonds closed at their lows of the day....
12/22/2009
It is important to remember that, contrary to commom opinion, it is mortggage backed securities and not the 10 year Treasury which determine interest rates. Each 50 basis point swing in the Fannie Mae 4.5% coupon 30 year bond will increase the interest rate exactly .125%. The reason we are usin...
12/21/2009
0
Comments
Mortgage backed securities (MBS) closed down 50 basis points today at 100.72 below both the 100 and 200 day moving averages. This move lower puts MBS bonds in a tentative position. A move lower from here could put mortgage interest rates on the upward escalator we have been expecting. Hopeful...
12/21/2009
0
Comments
With today's home prices where they are, a great case can be made for buying now. If you look at prices two year's ago and compare them to today's, you may find that a house that sold for $500,000. then might sell for $400,000. today. If a client waits to buy a year from now prices could be sli...
12/18/2009
