7/24/09

Treasuries started unchanged this morning, but mortgage prices were slightly weaker at 9:00. Today both Bernanke and Geithner will be testifying on financial reforms and regs. Congress is bent on tightening rules to regulate financial markets after the collapse in 2007. Bernanke wants to have control over consumer protection but so far Congress is moving toward a super regulator that will oversee consumer protection as well as overall regs on banks, non-banks, derivatives and mortgage markets. We are once again locking the door after the burglars have left the building totally empty.

Yesterday, first-time homebuyers and the sales of distressed properties helped drive the pace of Existing Home Sales up for the third consecutive month in June. Sales advanced 3.6% in the month, in line with estimates, to an annual rate of 4.89 million units. “The increase in existing-home sales occurred in all major regions of the country,” said Lawrence Yun, chief economist at the National Association of Realtors, who compiles the data. He said sales should continue upwards “due to tax credit incentives and historically high affordability conditions.”

Key Data:

• Single-family home sales rose 2.4% to a pace of 4.32 million in June. That's 0.2% below June 2008 levels.
  
• The national average for a 30-year mortgage rose to 5.42% in June from 4.86% in May. In June 2008 the 30-year rate was 6.32%.
  
• Total housing inventory June fell 0.7% in June to 3.82 million homes for sale ― a 9.4-month supply at the current sales pace.
  
• The median price for a home was $181,800 in June ― 15.4% down from June 2008.
  
• First-time home buyers made up 29% of the sales.
  
• Foreclosure-related sales accounted for 31% of sales in June.
  

Following a sizeable rally earlier in the week, mortgage backed securities prices fell nearly a full point yesterday after a strong stock market rally. Consequently lenders were forced to reprice for the worse multiple times and mortgage rates moved higher. There is not much market news today. Call me with any questions. We are supposed to have some beautiful weather this weekend, so get out and enjoy yourselves!!!!!!!!!