PM Rate Lock Advisory

RATE LOCK ADVISORY

August 19 , 2009, 3:00 PM PST

Rate Lock Advice: FLOAT
MBS prices closed up +9/32, even with the 9:45 AM ET pricing, and well below the morning high of +14/32. Unfavorable repricing had been seen.

When MBS prices are up, yields (rates) are down.

NOTE: Lock advice can change throughout the day .

National Average Fixed Rate Mortgage
Down 0.01% at 5.22% on Aug.19

Fannie Mae Mortgage Backed Securities
MBS Opened at 4.846% Up 0.003%.

10 Year Treasury currently 3.450% Down -0.06%

DJI stocks 9,279.16, Up 61.22, 0.66%

European and Asian Markets Down -0.636%

Nymex Crude Oil currently $73.53 Up $1.12

Weakness in global stock markets has helped MBS markets recover yesterday's losses this morning.

The prices for MBS in the US market closed up +9/32, equal to the 9:45 AM ET intial pricing level for most lenders. Today, MBS prices traded as high as +14/32, and as low of +4/32, and unfavorable repricing was seen from some investors.

No economic data came out today.

Tomorrow, Jobless Claims, Leading Indicators, and Philly Fed will be released. In addition, the Treasury will announce the size of the upcoming auctions at 11:00 AM ET.

Yesterday, July PPI showed a decline of -0.9% from June, and PPI decreased -6.8% from one year ago. Core PPI fell -0.1% and increased at a 2.6% annual rate. Both PPI and Core PPI came in lower than the consensus forecasts.

PPI measures the change in prices, paid by producers, for a fixed basket of capital and consumer goods. It also measures the change in prices received by the manufacturing, mining, agriculture and electric utility industries.

Similar to last week's CPI report, yesterday's data indicates that inflation is not a concern in the short-term. July Housing Starts came in at 581K annual units, below the consensus forecast of 600K. Building Permits, a leading indicator, also fell short of expectations. The weakness came entirely from multi-family units.

No more economic data will be released today.

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

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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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