Danny Salas

Archive for November 10th, 2009

Chico, CA Interest Rates Market Report – Economic Influences – November 10, 2009

We Bounced Right Off The 25-Day Moving Average

President Obama Signs Extension of Loan Limits

Conforming loan limits, as well as FHA loan limits, will remain at their higher levels through 2010.  This will help keep some liquidity in the markets as Fannie Mae and Freddie Mac may still purchase loans with amounts up to $417,000 in most areas of the United States.  Other “high cost” areas will allow the Guaranteed Security Enterprises to purchase loans with amounts up to $725, 750.00.  And FHA loan limits will remain at $400,000 in Butte County.

$40 Billion 3-Year Treasury Note Auction

Wow…$40 Billion!  The Auction fared quite well, actually.  It helped keep rates really low.  My concern would be with the longer termed Treasuries and the riskier investment those can pose.  It will be interesting to see how the rest of the Auction throughout the week will fare.  Foreign participation has been fairly respectable.  It’s understood that the more the foreign market participates, the stronger the dollar will remain.  The stronger the dollar, the more we can purchase foreigners’ exports.

Locking Advice

It’s a great time to lock.  We’ve seen Mortgage-Backed Securities touch the 25-Day Moving Average.  Actually, later this morning, we were above that level of resistance, however, we come back down and are sitting on it, as I write this blog.  If you don’t lock, and float into the week, you had better be prepared to lock, quickly.  I don’t see a lot of economic data that will push us up, over this 25-Day Moving Average level of resistance.

Related Must Reads

What Lead To Higher Conforming and FHA Loan Limits?
Why Be Leery of Yesterday’s Treasury Auction
How Levels of Resistance Effect Rates

What To Subscribe To:

Get Our Twitter Updates
Get Our Blog Blast
Connect With Us On Facebook