James Bowen

Lehman remained the news of the day and pretty much the news of the week. Financials took another hit today, bit the DOW did manage to eke out a small gain for the day. News was also out that wholesale prices dropped sharply in August which should have been a bright spot, but the same report stated that retail sales were down, which is further evidence that the positive effect of the "big stimulus package" is over. Foreclosure filings also "slowed" in August, but are still DOUBLE a year ago. Bonds ended on the losing side as the 10 yr TNOTE yield jumped a full tenth of a point, but it's impact on mortgage rates was fairly marginal. The 30 year fixed rate is still at 5.5% and the 15 year fixed rate is still at 5.25%. THESE ARE THE LOWEST RATES since the SPRING. With the market in such disarray and rates up and down, until the real impact of the FED BAILOUT is known, this is a great time to MAKE THE DECISION TO BUY OR TO REFINANCE.

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

Lehman still haunts the market today as it has been downgraded by major analysts today. Most other investment banks are also losing as a result of renewed sector worries. Other news today includes jobless results still higher than predicted and a trade deficit that is now the highest in a year and a half. Oil has again dropped, but IKE has driven wholesale gas prices up.Yet the DOW remains in the green somehow with stocks reliant on OIL prices fairing well today.

According to FREDDIE MAC's nationwide survey, 30 year fixed rates dropped from 6.35% last week to 5.93% this week. My early rate sheets showed my lowest lender at 5.375% PAR on a 30 yr and 5% PAR on a 15 yr. I did see a slight increase later in the morning, but now that TNOTE yield has stabilized around 3.62% after a drop off to 3.59%, rates will most likely be back to the morning level. THESE ARE THE LOWEST RATES IN SEVERAL MONTHS AND WELL BELOW SAME TIME LAST YEAR.

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

There really isn't much news today to keep the market direction one way or the other. Most of the morning was spent hovering around flat line, but has recently started to rise......except for the financial sector which suffers from Lehman Bros. Blues as the investment bank predicts a mere 3.9 BILLION LOSS. It now is forced to sell off chunks of it's assets in order to raise liquidity capital.

Oil had enjoyed a run up to near $108/bl and energy sector was a beneficiary, but now that IKE looks like it will miss the main oil supply structures and the fact that the new GAS supply report is out and shows gas demand down 2% over last year and supplies up even as crude supplies are down has driven it toward 103/BL.

The 10 YR TNOTE YIELD went on a wild ride today. After opening at 3.594%, it jumped to 3.676% before settling back down, now near 3.62%. Yes that is up a bit, but it is not likely to have much of an impact on rates. My most recent price sheet this morning showed one of my investor partners with a 30 year fixed rate at 5.5% PAR and the 15 year rate at 5.125%. 5% is available on the 30 year term for 2+ points to lender!!

It goes without saying that these rates are the best we've seen in several months. Lots of folks think that they will continue to go down in response to all the GOVERNMENT overhauls. THIS IS A GREAT TIME TO REFINANCE OR TO BUY.

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

After a pretty good start, more news about Lehman Bros. inability to get the Korean investment in capital needed has sent financials into a tailspin this afternoon after they had the big boost yesterday. Pending home sales also fell more than expected in July adding fuel to the struggling market. Another drop in oil is having an effect on energy related stocks which is adding to the overall market decline this PM. Questions abound whether or not the Fannie/Freddie takeover will cause a "loosening" of current guidelines and whether or not rates will continue to fall as predicted.

After an early run up, TNOTE yield has again retreated, now around 3.62% after reaching 3.69% earlier. Rates rose a bit after the announcement yesterday afternoon, but then came back down after hopes that buyers will come off the fence with lower rates and less stringent lending practices changed the sentiment in Treasury activity. I've seen the TNOTE yield gradually inch closer to the 3.28% range, where it was a year ago.

I do hope for all Mortgage Professionals that this indeed may be the first step toward a return to a more stable lending environment.

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

I was wrong on Friday morning not to think that the market could stage a rally going into the weekend. I under-estimated the news that was brewing in the afternoon regarding the "takeover' of Fannie/Freddie. After spending much of the day in the serious red, stocks bounced way back and BONDS were a casualty of the big turnaround. The weekend's HUGE news that the US government officially took control of FANNIE/FREDDIE has continued Friday's Rally into this morning with the DOW up over 2% and all others up big as well. The BIG question which remains to be seen is if the new role the government is playing as Mortgage Guarantor will do enough to open the SECONDARY MARKET back up to investors willing to risk purchase of this Mortgage debt. As is usually the case with market rally's such as this,investor's look away from "safe Bonds" and towards more risk/higher reward type opportunities. Bonds have fallen sharply, and TNOTE yield has already jumped over .05% now ranging near 3.75%. Friday's low was around 3.56%, so you can see what happened between midday Friday when the BOND rally ended and this morning. I saw a fairly large increase in Mortgage rates late Friday, and based on current bond trends this may continue into the morning.

The interesting note about this bailout news is that once the secondary market becomes more stable as predicted, rates are also expected to drop as lenders begin to open up again, as they feel more secure about being able to sell what they originate. The reality of this is that no one can really predict when this stability will return and when homeowners may find relief and when buyers will regain the confidence to make their purchase decision.

This does look like the start to what should be a wild ride for the week. HOLD ON!

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