Friday January 21, 2011
By John Sauro
FINREG to Increase The Cost of Home Financing
Many are unaware of the unintended consequences FINREG, the Dodd-Frank Bill and The Fed Rule will have on the cost of home financing and credit availability.
Unfortunately, without repeal or changes to these Bills and Rules , they will change the landscape of home financing by eliminating fair competition in the industry.
The end result will be increase costs to the consumer, create a monopoly of four banks, severely limit the availability of credit and will set precedent for the Fed to do the same to other industries.
It’s time we stand up and say enough is enough.
I ask you vist WWW.REPEALFINREG.COM .
This website will quickly inform on the issues and enable you to easily voice your concerns to your elected officials.
Mortgage Bonds Still Volitile
Mortgage Bonds are trading in a wide 138 basis point range of $98.40 to $99.78.
Prices remain above the nearest level of support of $98.50. We will see if Bonds can retest the top of the trading range. If not, it could be bad for mortgage rates.
Good News on Housing
Existing Home Sales for December were reported at 5.2M, much better than 4.8M expected. Unsold homes inventory fell to an 8.1 month level- well below November’s 9.5 month reading. The lowest level in almost a year.
Housing starts however fell 4.3% in December to an annualized rate of 529,000 units, below the 550,000 that was expected.