Loan Biz Blog

Treasury Secretary Geithner is medium rare as the House Oversight Committee is grilling him on AIG. Undisclosed documents, backroom deals, maybe a cover up coordinated with Sir Bernanke, and the counter parties all paid off at par (by the taxpayers) are the hot topics. As we speak, their search for a smoking gun continues. The FOMC is finishing up their two day meeting with any change in short term rates and policy statement due out at 1:15 pm cst. The consensus thinking is that they will continue their low interest rate policy for an “extended period of time”. We also expect the FOMC to note that the economy still has “challenges” with some improvement seen within the economy. Given today’s power packed agenda, the FOMC should not move the market. Earlier this morning, New Home Sales dipped by 7.6% to 342K units. Sales gains in the Northwest and West were over shadowed by losses in the Midwest and South. Housing, along with employment, needs to be top priority for our country. Let’s see what the CEO of the U.S. has to say tonight. We also have 42 billion of 5 year notes on the auction block. Results are due at high noon cst. Given the anxiety in stocks and overseas markets, we expect the issue to go well. Trouble with this call is that it is happening on a FOMC day and historically, only one out of the last five have come in on the screws. The others had been sloppy. Technically, the market is making higher highs and higher lows, holding the bullish regression line. Once again we challenged the 3.56% yield level and have backed away. Given all of the cross currents, we advise a defense pipeline strategy until the dust settles. Currently, the 10 year note is up 6/32’s (yield 3.61%), mortgage backs up 3/32’s, and stocks off 30 something on the big board. Buckle up!

With Permission & Courtesy of Scott S. Eggen
Senior Vice President – Capital Markets

For other rate lock advisory commentary please visit:
http://www.mrloanbiz.com/DailyRateAdvisory

Sam Cowen, NMLS ID#: 176693
Branch Manager, Lending in 47 States
PrimeLending | a PlainsCapital Company
2007 N Collins Blvd Ste 403 Richardson, TX 75080
Email: 888@MrLoanBiz.Com Web: www.MrLoanBiz.Com
Toll Free: (888)MR-LOAN-BIZ (888) 675-6262 Toll Free Fax: 866-908-2611