Bonds Rise in Value as Stocks Slump

October 16, 2009

Daily Mortgage Updates

A&N Mortgage Logo16 October 2009 ?Bonds opened at 3bps today and have increased to 19bps this afternoon. If this holds, we may see the bonds continue to improve in the next few days. The rates have risen sharply from previous lows.

Weaker than expected sales from GE and IBM have driven the Dow down 130 points today. Bank of America also posted its first loss of the year that came in worse than analysts predicted. As I mentioned on Wednesday, it would surprise few people if the stock market pulled back a bit – something that will help the bond market.

The New York Federal Reserve has begun to cut back on its purchases of Mortgage-Backed Securities. The New York Fed bought only $16.1 billion worth of these securities this week, down from $20 billion in the previous week. Year-to-Date, the Fed has purchased $944 billion worth of these securities. The Fed has allotted a total of $1.25 trillion for the program which is set to expire March 31st, 2010.

Consumer Sentiment was reported at 69.4, lower than expectations of 73.5. Analysts believe the drop in sentiment reflected the current trend among consumers to increase personal savings and pay down household debt.

Mortgage rates are still solid right now, 4.75% (4.83 apr) on the 30 year, 4.375% (4.423 apr) on the 15 year.

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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