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Global Pressure - 11/30
Posted 11-30-2009 at 10:38 AM by dlenski
Global Pressure
11/30/09 Mortgage Backed Securities are minus 3bp this morning. Global news kept MBS on a roller coaster since last Wednesday. Friday we saw a large sell off in the equity markets. Monday looked to be a follow through of Friday until Chicago PMI came in better than expected. The news halted the sell off in equities and turned the market positive. We have seen that momentum stall.
The US has been dependent on the support of foriegn investors to purchase our debt. We will have the auction schedule for next week released later this week. The worry is the problems with Dubai will weaken the interest for our debt. The same countries that are propping up our economy will have to save the most eminent threat to the global economy. That means a weak showing in our auctions. This while Fed continues to wind down the purchases of MBS. This combination could put pressure on the bonds.
The current National average for a 30 year fixed rate mortgage is 4.78% with .75 points. That is the lowest AVERAGE ever recorded.
www.mortgageserviceswi.com
11/30/09 Mortgage Backed Securities are minus 3bp this morning. Global news kept MBS on a roller coaster since last Wednesday. Friday we saw a large sell off in the equity markets. Monday looked to be a follow through of Friday until Chicago PMI came in better than expected. The news halted the sell off in equities and turned the market positive. We have seen that momentum stall.
The US has been dependent on the support of foriegn investors to purchase our debt. We will have the auction schedule for next week released later this week. The worry is the problems with Dubai will weaken the interest for our debt. The same countries that are propping up our economy will have to save the most eminent threat to the global economy. That means a weak showing in our auctions. This while Fed continues to wind down the purchases of MBS. This combination could put pressure on the bonds.
The current National average for a 30 year fixed rate mortgage is 4.78% with .75 points. That is the lowest AVERAGE ever recorded.
www.mortgageserviceswi.com
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