Danny Salas

Archive for September 23rd, 2009

Chico, CA Interest Rates Market Report – Economic Influences – September 23, 2009

Mortgage-Backed Securities Are A Stool Pigeon

$8,000 Tax Credit Ending?

November 30, 2009 is the scheduled end of the $8,000 Tax Credit Incentive that the Federal Government is offering to first time home buyers.  Will the program be extended?  Will it get an overhaul?  Or will the U.S. Government let it expire?  Applications are up, nation wide, as people scamper to find their dream home at record lows, and interest rates, too.

2-Year Treasury Note Auction Bids Well

Again, there was nice interest in the Treasury Department’s record auction of $43 Billion in 2-Year Bonds.  That helped rates stay steady, late yesterday afternoon.  Currently, Mortgage-Backed Securities are like a stool pigeon, sitting on the 25-Day moving average, afraid to do anything, or go anywhere, until the Federal Open Market Committee Meeting ends, and Good ‘Ole Ben Bernanke comes out and talks about what’s happening in the U.S. Economy. 

Movin’ On Up

Looks like the economy is doing fairly well.  We’ll know more, today, after Bernanke speaks.   However, even with all of the good news that we’ve been reading about lately, we still have to keep in mind that, until unemployment figures start to look more healthy, we’re not going to move forward very quickly.

Lock Advice

Again, we’re going to float today, however, things could change, drastically, if The Fed’s Comments hint at The Government Mortgage Backed Securities Purchase Program Ending, hints of inflation, comments that the housing market crash has ended, or anything else the media can pick up on, even in an inflection of Good ‘Ole Ben’s voice, to stir things up a bit.  So, it’s important to have your finger on the lock button…just in case…