Yesterday, the Fed announced that the Fed funds rate would remain at 2.00% as the market expected. This morning’s May existing home sale number rose 2% to reach 4.99 million units (annual rate) as the lower housing prices started to lure buyers back into the market. The supply of homes for sale still remains about twice the level of that in a stable market.
Oil rose by more than $3 a barrel following reports that Libya may cut production and that crude oil could hit $170 a barrel this summer. Stocks tumbled after Goldman Sachs downgraded General Motors and Citibank as the market fears the credit market write downs will extend the economic slump. The bond market headed higher on the news. The current benchmark FN 6.0 MBS (which roughly equates to a 6.5% borrower rate) is up 6/32 in price, and the 10yr Treasury note is up 11/32 in price with a yield of 4.056%.
The current rate 0.30 better compared to that of yesterday.
Depending on which side of the market your on, the news is good or a bit bleak. Whatever your situation I can help to make it better. If you are thinking of buying, selling or refinancing a home or commercial property, please give me a call. 916-899-4839
Have a great day!
Thursday, June 26, 2008
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