Danny Salas

Archive for January 5th, 2010

Chico, CA Interest Rates Market Report – Economic Influences – January 5, 2010

Still Attempting a Modest Correction

Rates Still Trying A Reversal

Mortgage-Backed Securities are still trying to break away from the high’s of November 25.  We’re currently up almost 30 basis points.  Coupled with yesterday’s modest gains, interest rates will cost about 0.5% Point less than the same rate, on Friday.

Stocks Set For The Year?

Traditionally, since 1973, when stocks do well (on the first trading day of the year), they do quite well the rest of the year.  And Stocks did quite well, yesterday.   We’ll have to watch this and see how the rest of the year pans out.

Pending Sales…Take With A Grain of Salt

The National Association of Realtor’s Pending Home Sales Report has been released this morning.  Now, before I relinquish the results, let’s keep in mind that November was a month that many first time home buyers were sitting on the fence, wondering if the first-time home buyers’ tax credit would be extended or amended.  With that in mind, take a 16.0% decline in these figures with a grain of salt, and expect these numbers to get better, in the coming months.

Locking Advice

We’ll carefully float, into the day.  However, it’s important to know that we only have another 50 Basis Points to move, until we hit the 200-Day Moving Average.  So, there’s not a lot of economic information, or other news, that could really help rates much more than what we have today.  So, we’ll float, just in case we can hit that 200-Day limit.  If we do…we’ll float until we see a reversal and lock before banks have an opportunity to change their rates.

Related Must Reads

Why Buy Now…Why Rate Outweights Price
Buyers WAKE UP!
House Passes Tax Credit Extension
What Moving Averages Can Do

What To Subscribe To:

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