Saturday, November 15, 2008

The Highlands Cashiers Mortgage Market....


Here is a copy of Jim Mullen's Weekly update. Jim is gracious enough to update us on a weekly basis on how the mortgage market is shifting... If Jim can ever help you or ansewer questions just give hima call... Or contact The Blue Ridge Summit Group at 828-743-7077 or 404-394-7144



30 year conforming rates are 5.875% and 15 year are 5.5%. About were we were last week. The week was very volatile again with the economic news.

Mortgage TimeMortgage Market News for the week ending November 14, 2008
Compliments of Jim Mullen Mountain Village Mortgage Loan Consultant
PHONE:(828) 743-7073
FAX:(828) 743-9830
https://mail.kendallhunt.com/exchweb/bin/redir.asp?URL=http://www.ncmountainvillagemortgage.com
jmullen@metrocitiesmtg.com
3065 Highway 64 EastSapphire, NC 28774
Cell: (828) 200-9168
Events This Week:
Retail Sales Fell
Import Prices Lower
Manufacturing Down
Sentiment Higher
Events Next Week:
Mon 11/17 Industrial Prod.
Tues 11/18 PPI
Wed 11/19 CPI Housing Starts FOMC Minutes
Thur 11/20 Philly Fed

Rescue Plan Changes Direction
For mortgage markets, the biggest news of the week came from Treasury Secretary Paulson during an update on the $700 billion TARP rescue plan. Paulson surprised investors with the news that the Treasury has scrapped the original plan to purchase troubled assets from banks and will use the funds in other ways to support the still "fragile" financial system. Lawmakers and investors were provided few details about the anticipated future use of the funds, and this abrupt shift in plans added to the uncertainty confronting investors in recent weeks.
While mortgage rates ended the week nearly unchanged from the prior week, daily volatility remained high. During October and November, movements in mortgage rates have been much larger than usual, primarily due to the high degree of uncertainty facing investors. Will there be a second major government stimulus package and what form will it take? What will be the impact of the extra debt issued to fund the government programs? Will other countries such as China have less money available to invest in US bonds, including mortgage backed securities, while they stimulate their own economies? Finally, how will the Treasury use the remaining funds from the $700 TARP rescue plan (discussed above)? Once investors have answers to these and other questions, we should see less volatility in mortgage rates.


Also Notable:
China will provide up to $580 billion in fiscal stimulus to boost its economy
October Retail Sales fell a record 2.8% from September
President Bush called for modest financial reforms which would avoid excess regulation
Oil prices fell to $56 per barrel, down from $147 per barrel in July

Average 30 yr fixed rate:
Last week:
-0.49%
This week:
+0.02%
Stocks (weekly):
Dow:
8,600
-250
NASDAQ:
1,540
-100


Week Ahead
The inflation data will highlight the Economic Calendar next week. The important Consumer Price Index (CPI) inflation report will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. The Producer Price Index (PPI) will be released on Tuesday. PPI focuses on the increase in prices of "intermediate" goods used by companies to produce finished products. In addition, Industrial Production, an important indicator of economic activity, will come out on Monday. Housing Starts and the detailed minutes from the October 29 Fed meeting will be released on Wednesday. The Philly Fed index and Leading Indicators will round out the schedule on Thursday. The G20 economic summit, a meeting between large industrialized nations, will take place over the weekend.

To learn more about news impacting interest rates and mortgage markets, go to https://mail.kendallhunt.com/exchweb/bin/redir.asp?URL=http://www.mbsquoteline.comTo learn more about the newsletter, please call 800-627-1077All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.
This email was sent from Jim Mullen at Mountain Village Mortgage. To unsubscribe, email jmullen@metrocitiesmtg.com.



The Blue Ridge Summit Group O: 828.743.7077 or C: 404-394-7144 ask for Matt

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