James Bowen

Stocks continue their decline as retailers have been posting earnings that do not meet estimates and future projections that are adjusted downward. This has again reinforced the market tone which is being driven by the consumers reluctance and inability to SPEND. Consequently, after no Treasury activity yesterday, today begins with a rally to Government sponsored debt, even at lower yields. The 10 year Treasury note started the day at 3.73% after Monday's close at 3.75%. It is currently down about 7/100ths to the 3.69% range. Pricing is also down slightly with sub 6% rates holding for 30 year terms and sub 5.75% available for 15 year terms. For a cost of roughly 1 1/2 pts., you can save approximately 3/8's to rate. This is based on a rate sheet received by one of my lenders this morning.

Today's next big driver will be the Treasury Secretary's update on the Bailout progress. This is sure to add to the day's nervousness. We'll have to wait and see.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION

It will be another very interesting week on the Street just as it has been for weeks on end. There have already been a bunch of events occurring over the past day or two which will provide today's opening sentiment.

China has joined in the STIMULUS gameplan and the FEDS bought more INSURANCE with another 40 Billion investment in AIG. These factors are suggesting a higher market opening, but eyes are on Ford and GM's request to join in the BAILOUT BUCKS.

More earnings numbers will be coming out as well which adds to the daily anxiety and ensures more swings this week. If the sentiment maintains for today's open, there will be less interest in Treasuries and yield should continue to ride Friday's wave upward. Friday's close showed a full tenth increase from the open. Pricing was not really impacted much Friday, but I would think that it will catch up to the market by late morning. We'll have to see if lenders maintain sub 6% PAR rates on the 30 year fixed.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION.

Well, I expected sell off yesterday but not 5% off the DOW! This is just another sign that the election euphoria is seriously overshadowed by the reality of where the Country is at right now and how deep rooted the problem is. We are seeing more economic news today showing higher unemployment and weak retail sales. Overseas Bank rates are being adjusted in response to the recent fed drop. This is truly a Global situation. President Elect Obama will certainly have his work cut out for him come January. Investors just can't seem to jump on the buying train and won't until Americans show them signs that trends toward spending are increasing. Those signs still appear to be off in the future.

There is a piece of good news that shows up today. Oil is once again down based on huge swings in oil surplus reports, in particular gasoline. Hey, I paid $2.69 yesterday. That's the cheapest I've paid there in quite some time.

This type of market sell off also bodes well for Treasuries, as we know that "generally" there is a large increase in buying interest as these notes have Government backing and are considered to be safety nets. Treasury yields all decreased yesterday as buying spurts increased. The 10 yr note closed down to 3.71% from it's open at 3.73%. This mornings open has it below 3.70%. This is also "generally" good news for rates and may create an opportunity to lock to your advantage. Yesterday featured several pricing changes, before 30 yr fixed settled at 5.875% and 15 yr fixed at 5.5%.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION

History was made as AMERICA spoke loudly yesterday. I don't think any of us were really surprised by the outcome, but I didn't think the difference in POPULAR VOTE would have been that wide. There was no question that the electorals would have had the wide swing they did. Even if your candidate did not win, DID YOU EXERCISE YOUR RIGHT TO VOTE?

The BIG election day rally may be reduced with today's action if investors look to cash in on some of their gains. The 10 yr note bucked the general trend of yield increase with market surges yesterday as DEMAND for the longer term safety bond was also steady. The previous day's open was 3.94% and close was 3.76%-that's almost a 2 tenths drop in yield. The last of many rate changes I saw yesterday showed the best fixed 30 yr back at 6% and the 15 yr at 5.625%. They can be bought down by roughly 1/2 PT.

So keep on eye to see where the "MOOD SWINGS" today and how much selling for profit occurs. CAN ELECTION RALLY CONTINUE?

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR TRANSACTION

Happy Election day! I would have to think that most of us are pretty happy it's finally here and we can move forward. Chances are the Market will see it the same way based on the overseas markets and pre-open futures. For what was a pretty calm day on Wall St in the lead-up to today's vote, rates changes several times yesterday as the TNOTE yield veered up and down, settling at 3.90% range and adjusting rates SLIGHTLY downward.

With today's optimistic mood that the election will finally be behind us and some change will happen, the market should open fairly higher, which may affect rates early. The question is whether or not early gains will maintain through the day or past today. Investors will surely refocus after the election on several negative economic reports and earning releases. A report out yesterday showed a large decrease in manufacturing activity and today will feature the newest factory data from the Commerce department.

There may be a "BRIEF" window to lock rates before the markets anticipated early rally affects comes into play. Keep your eyes open today early!

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION