Rate Lock Advisory

RATE LOCK ADVISORY

August 21 , 2009, 11:00 AM PST

Rate Lock Advice: LOCK
MBS prices are down -16/32, far below 9:45 AM ET initial lender pricing of unchanged. Unfavorable repricing has already occured and may be a risk again.

Stronger than expected Existing Home Sales data hurt MBS markets.

RATE NOTES
When MBS prices are up, yields (rates) are down.
Lock advice can change throughout the day .
Good economic news is Bad news for Rates.

National Average Fixed Rate Mortgage
Unchanged at 5.21% on Aug.21

Fannie Mae Mortgage Backed Securities
MBS Opened at 4.829% Down 0.047%.

10 Year Treasury currently 3.550% Up 0.13%

DJI stocks 9,479.36, Up 129.31, 1.38%

European and Asian Markets Up 1.077%

Nymex Crude Oil currently $73.34 Up $0.36

Yesterday morning MBS prices began with small losses, but moved higher after Claims data was released. Weekly Jobless Claims came in at 576K, above the consensus forecast of 550K. Investors were disappointed that the job market didn't show some signs of improvement this week.

MBS prices closed up +5/32 (FNMA 30-yr 4.5 at 100.09), above the 9:45 AM ET initial Lender pricing level of +2/32, and at they closed at their high for the day.

Yesterday's mixed economic data was roughly neutral for MBS markets. Jobless Claims came in higher than expected, the Philly Fed index was stronger than the consensus, and Leading Indicators came in right on target.

The Treasury announced that it will auction a record $109 billion in 2-yr, 5-yr, and 7-yr Treasuries next week. The Dow rose 70 points.

Today, Existing Home Sales will be released at 10:00 ET. In addition, Fed Chief Bernanke will be speaking at 10:00 AM ET

The Fed purchased $25.0 billion in agency MBS during the weekly period ending August 19, from $20.4 billion the prior week. Freddie Mac reported that average mortgage rates fell in the week through August 20, with 30-yrs hitting 5.12%, from 5.29% the prior week.

WORRIED ABOUT AN OUT OF TOWN APPRAISER?

If you are concerned about the value of your listing and need a local appraiser consider FHA financing where we can still control the appraiser selection.

Read recent HVCC Wall Street Journal Article

Where are the best rates: Mortgage Brokers or Direct Lenders? Rate Survey

The dreaded Stealth Rate Shopper Strikes Ditech full story

Click for inter-day Rate Lock and Market updates

Click for current Lending news and information

Time is running out, don't let your buyers delay, the $8,000 Tax Credit is expiring on November 30.

Up to a $8000 Tax Credit is available from IRS

10 Ways to Avoid A Closing Nightmare
An easy list that will make your life easier

Your Fha Guru

Bill Ladewig
800.664.SAVE (7283)
Bill@yourfhaguru.com

The Mortgage Markets and Rate Lock Advisory is updated several times a day and is available at http://www.yourfhaguru.com

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