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Another Monday Update

Monday, May 07, 2007
by Mike Erhardt
Fed meets this week! Anything can happen, but the forecast is “no change” to short term rates!  Let me know if you need anything!
Forecast for the week:
Benny and the Fed will take center stage this week, as they release their Interest Rate Decision and Policy Statement on Wednesday afternoon. It is highly unlikely that the Fed will make a change to the Fed Funds Rate at the meeting, but it will be especially interesting to hear the tone of the Policy Statement in light of softer Employment Report and moderating inflation.
Speaking of inflation, Fed Chairman Ben Bernanke has to be smiling, as the latest data suggests the Fed is doing a great job in handling the economy. Recent reports have shown moderate, stable economic growth and inflation pressures easing.
The tone of the Fed's Policy Statement on Wednesday might just be the catalyst for a move. If it suggests that inflation is controlled, Bonds and home loan rates will like this news, and see some improvement - but if the Fed still sounds overly concerned about inflation, Bond prices and home loan rates will worsen.
 
Jason Miller                                       
Vice President
Cascade Mortgage
101 N. Tejon St. Ste. 270
Colorado Springs, CO 80903
Thanks to Jason for that update. Call either one of us if you have any questions.
MIke 

A Monday Mortgage Update for you.

Monday, April 23, 2007
by Mike Erhardt
30 Year Conventional:  6.00%  30 Year VA: 5.875%  CHFA: 5.875%
Rates are still great! Lots of economic news this week and it appears we may be in for a slight rate increase!
 
Current Trend Direction:  Higher
Risks favor:  Locking as Resistance pushes Bond lower
Current Price of FNMA 5.5% Bond:  $98.88, -3bp
As Rodney Dangerfield would say - "Whooooaa...it's rough out there."  And Mortgage Bonds have had a wild morning, which began quite nicely.  Bonds started out by continuing their recent ride higher, and blasted through the triple-layer ceiling of resistance made up of the 25, 50 and 100-day Moving Averages. 
And just when it looked like a celebration would be in order...that's when things got rough out there.  Bonds were unable to hold on to their gains, and stay above the ceiling of resistance.  The Bond has since been pushed back down, giving up all of its gains, and now shows a modest loss for the day. 
 
Jason Miller                                            
Vice President
Cascade Mortgage
101 N. Tejon St. Ste. 270
Colorado Springs, CO 80903