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2009
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Mortgage backed securities (MBS) closed down 28 basis points (bps) today at 101.53 just below resistance of the 25 day moving average and above support offered by the 50 day moving average at 101.35. Today was the first day in weeks that MBS bonds have failed to close above all the moving averag...
12/04/2009
Congress is looking at the possibillty of severely limiting mortgage brokers and their livelihood. Lawmakers are considering legislation that would impose severe penalties on brokers for violations of a new "duty of care" standard to borrowers. Further they are mulling over a plan to limit yiel...
12/03/2009
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Mortgage backed securities (MBS) closed down 25 basis points (bps) at 101.81 above support represeneted by the 25 day moving average at 101.61. A better than expected report on initial job claims combined with worries about the massive supply of treasury offerings pushed MBS bonds downward for t...
12/03/2009
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Changes may be brewing at the Federal Housing Administration (FHA). The FHA is required to have capital reserves of 2% of the loans it insures in what is called a capital reserve fund. As of November they had only .53% in reserve. Short of a bailout, there are a couple ways of boosting the fun...
12/02/2009
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Mortgage backed securities (MBS) closed down 12 basis points (bps) at 102.06 right on a support level. The next support level is a full 50 bps below at 101.56. Remember that each 50 bps move represents a .125% change in the interest rate for a conforming 30 year fixed loan. The move is attribu...
12/02/2009
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One of FEd Chairman Bernanke's key tasks is to manage inflation. Currently he is keeping interest rates down with his commitment to buy an additional $212. billion worth of mortgage backed securities between now and the end of March. Thusfar that has kept interest rates low and has stimulated t...
12/01/2009
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Mortgage backed securities (MBS) were down 44 basis points (bps) today closing at 102.19 below resistance at 102.41. A Fed speaker was heard talking about the dreaded "i" word today, inflation. This combined with easing of concerns about the Dubai debt crisis caused stocks to rally as the doll...
12/01/2009
