North Atlantic Mortgage Corp | Refinance | Home Equity | Mortgage Refinance

Today’s Market Update–Wednesday November 26, 2008 2:17 pm ET

Current Trend Direction: Rates Lower-Bond Prices Higher

Current Price of FNMA 6.00% Bond: 102.31, +16 bp

The 30 Year Fixed Rate is 5.125%, APR 5.214% and the                           

5/1 Jumbo Arm is 5.125%, APR 4.809%.

Mortgage Bonds have been bouncing around today. Yesterday’s Fed announcement should help to improve pricing over time.

And speaking of time, be careful if you’re trying to time this market. Locking into rates here is a safe play. Especially since prices are now trading in a very wide175bp range between support at the 200 Day Moving Average and resistance at the price highs of 2008.

Mortgage Bonds are trading a little bit higher due to this mornings economic reports.

Durable Goods Orders had the largest drop in two years 6.2% far worse than expectations of 2.5%. After removing transportation orders, Durable Goods fell 4.4%. Still not a good number.

Initial Jobless Claims came in better than expected at 529,000. The four-week average of continuing claims rose to 3.92 million, a 25 year high.

Inflation as evidenced by the Personal Consumption Expenditure Index (PCE) came in 0.0% in October; the year-over-year rate is 2.1% down from September’s reading of 2.2% year-over- year. Lower oil prices are responsible for the low number. 

Personal income rose 0.3% in October. The forecast was for 0.1%. Personal spending dropped 1% vs.. a consensus of –0.7% representing the largest decline in seven years.  This is also evidenced by the Personal Savings Rate which was 2.4% in October, an increase of 1.4% compared to September.

The November Chicago Purchasing Managers Index was 33.5, worse than expectations of 38.5. The Michigan Consumer Sentiment was 55.3 worse than expectations of 58.0.

October New Home Sales were 433,000. Worse than expectations of 450,000. However still showing signs of activity.

China lowered its benchmark lending rate 108bp to 5.58%.

The Bond Markets close at 2:00pm ET today and Friday, and will be closed all day tomorrow for the Thanksgiving Holiday. Your next update will be delivered Monday. From all of us here at North Atlantic Mortgage Corp we wish you and your family a Happy Thanksgiving.

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For the week of Nov 24, 2008

Last Week in Review

"THE IMPORTANT THING IN THIS WORLD IS NOT SO MUCH WHERE WE STAND, AS IN WHAT DIRECTION WE ARE MOVING." Oliver Wendell Holmes. And when it comes to the direction our economy may be moving, there was some surprising news from the Fed last week that the "Minutes" from their October meeting revealed.

After years of being concerned about inflation, the Fed is now concerned about deflation. So what exactly is deflation? Deflation is when prices drop, which generally is due to lack of demand, and therefore lack of pricing power. With the economy slowing down, we are hearing economists forecast that we may be in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds, because the fixed payment received would actually buy them more goods and services over time as prices decline.   READ MORE

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North Atlantic in the News

October 30th 2008 Bloomberg

 

John Sauro, President of North Atlantic Mortgage, Corp. Discusses Mortgages Today with Kathleen Hays.   read more

July 15th 2008 Fox News

"Your World" Neil Cavuto /David Asmen 07/11/08 4:00Pm SHOULD TAX PAYERS BAIL THESE MORTGAGE GIANTS OUT? John Sauro of North Atlantic Mortgage Corp. says we can't afford NOT to.  View appearance

July 8th 2008 CNBC

Commentator John Sauro Addresses Bottom Line Questions on Mortgage Availability and the Economy.  View appearance

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Copyright © 2005 North Atlantic Mortgage Corp. dba NAMCO a MA Licensed Mortgage Broker MB3193 733 Summer St. Suite 204 Stamford, CT 06901 
Licensed Mortgage Banker, CT Banking Department *Registered Mortgage Broker, NY, FL, CO Banking Department *Loans Arranged Through Third Party Providers.  
The rates displayed in the above ticker are for conforming loan amounts. All rates referenced on this website are subject to change without notice

 

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