31 Congressmen Ask Fed to Delay Rule 226
Friday March 18th, 2011 6:49 PM ET
By John Sauro
Lock In And Avoid The Volatility
Earlier in the week Bond prices benefited from the concerns over Japans Nuclear situation.
Investors nervous over how Japans situation could hurt stock move to Bonds in a “Flight to Quality”.
On Thursday and Friday stocks recovered as it appeared that the problems with Japans nuclear situation most likely get worse.
The 4% coupon finished down 9bo to 99.31. Some lenders lowered mortgage rates in response improvements in the bond market. However, there is still much uncertainty regarding Libya and the situation in Japan is far from over. Therefore I am recommending locking into rates.
The 30 Year fixed rate is currently 4.75% – Zero points and the 5/1 Arm is 3.875%-zero points.
There have also been rumors that QE3 may be coming if there is a global slowdown.
Housing Starts were down 22% in February to 479,000 units and was the biggest monthly percentage drop since March 1984. Building permits, a sign of future construction came in at 517,000 versus the 573,000 expected. While these reports at first glance are disappointing, they may ultimately have a positive effect on home sales, as fewer new homes on the market allows existing inventory to be sold more easily.
Update on FINREG Update Financial Regulation
Protect your homes value and your right to affordable home financing.
Earlier in the week I was in Washington D.C., meeting with the members of the House Financial Services Committee regarding the Fed rule on loan originator compensation and the Dodd-Frank Bill.
The meetings were constructive and resulted in a letter sponsored by Congressman Spencer Bachus, signed by 31 congressmen asking the Federal Reserve to delay the rule. Additionally Senator’s Jon Testor & David Vitter also sent a letter to the Fed requesting the same.
Go to www.RepealFinreg.com and see why these regulations will further cripple the lending and housing markets.