Long Beach Morgage Report: A very Cold Inauguration on Wall St.

Long Beach, CA. Although the crowds were cold in Washington DC for the inauguration, the stock market was even colder! Equity markets are trying to recover from yesterday's worst inaugural stock market performance. Stock market has opened on the positive side and our mortgaged backed bond market is bouncing from negative to positive in a very narrow range. So your pricing should be about where it finished yesterday at the moment. Which can change as you all know by now. Currently, the Ten Year yield is at 2.47% (2.40% yesterday). Right now, the futures market is pricing in an 88% chance that the Fed keeps rates somewhere between 0 and .25% until at least April 29th, 2009.

Some of our economic news is hanging on President Obama's economic team pushing to complete a bank-rescue plan that would be coupled with the $825B stimulus plan already being negotiated with Congress. There is speculation that the bank-rescue plan will include a $50B program to stem foreclosures. Adding to this is an important political appointment which is Secretary of Treasury, with critics concerned about the nominee's failure to pay taxes and his closeness with Wall Street.

There is no relevant economic news scheduled for release today. Tomorrow brings us the release of both of this week's only reports. Neither are considered to be of high importance to the markets, but they are the week's only factual releases. Therefore, they may influence trading enough to slightly affect mortgage pricing.

Kirk Mulhearn, a mortgage planner and real estate broker, can be contacted at 562-989-4608 ext.110

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