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The market is mixed today and even some pretty good market news is not creating positive sentiment and trading. Orders for manufactured goods were up in July but this has already been taken into consideration by investors. Numbers due out for auto sales and also expected negative results on payrolls which comes out Friday, will most likely keep investors skeptical.

Oil dropped again and is now below $108/Bl. We saw an upswing in prices in anticipation of Gustav and then a huge downward adjustment after the damage from the storm was much less significant than expected. This shows just how volatile this commodity still is. I expect that with the approach of Hannah, this same type of trading activity will occur.  Ultimately, Global demand will continue to be the catalyst for OIL's pricing over the next several weeks.

The energy sector and tech sectors are down the most today, but surprisingly the financial sector is still holding it's own. This may be due in part to news that both purchase and refinance mortgage application volume is up. Mortgage rates continue to drop as BONDS strengthen. The 10 Year TNOTE yield moved backward to 3.71% down from yesterdays close of 3.74%. I expect this trend to continue this afternoon and if so, we may see a slight rate reduction to go along with yesterday's drop of almost .25 discount/basis point. We continue to inch closer to sub-6% fixed rates on a 30 year term.

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

I'm not going to restate the obvious. Markets regained much of what was lost in yesterday's HUGE sell off. BUT, the real news today focuses on Bank to Bank lending rates based on LIBOR. Banks aren't following suit with the fickle stock investors who once again jumped on board in hopes of a Congressional fix soon. Longer term lending between financial institutions is virtually non existent. Companies with great credit ratings are unable to fund their capital needs, as lending has now been limited to an overnight function as banks won't take any chances with longer term financing deals. Consequently, the overnight LIBOR jumped to almost 4 points above FED bank to bank lending rates, and longer term LIBOR is 2 points above FED rates. ALL Treasuries gave up they gained yesterday. The 10 year note fell over 2 points and Yield jumped right back to where it was before the BIG BUST. This is extremely troubling for those homeowners who are stuck with ADJUSTABLE RATE MORTGAGES (ARMS) as these are tied to LIBOR not prime.

Folks, if you have ANY OPPORTUNITY to get out of your ARM, NOW IS THE TIME. This mess isn't going to be cleaned up anytime soon, so you can bet that BANK lending will get stingier in the days and weeks to come.

Let me help you BREAK YOUR ARM. (in the figurative sense of course)

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

Are you kidding me!!!!! A 777 pt loss to the DOW in one day!!!!I thought triple 7's were supposed to be lucky!! So, let's put a figure to that loss today. How about 1.1 TRILLION DOLLARS. WHAT WAS WORSE, THE BILL PASSING OR THIS LOSS?  Does anyone think politics had anything to do with the HOUSE not passing this bill? News reports suggest that an almost equal number of DEMOCRATS voted for the bill as REPUBLICANS voted against it. Is this the last big REPUBLICAN revolt against the parties COMMANDER IN CHIEF? Supposedly Nancy Pelossi had some "unkind " words to say about George W and his entourage and that apparently ticked off some REPUBLICANS who were going to vote yes. So, basically they said " NA,NA,NA,NA,NA" and voted NO pretty much just to spite her. And another REPUBLICAN Rep was quoted as calling the bill " a big cowpie with a marshmallow in the center ". WOW...these are our elected officials talking about the future of the American Financial system....what a way with words they have, don't they?

Other market "sad stories" today included the end of Wachovia as CITI gobbled them up. There are over 110 BANKS now on the FED "troubled list". Any more bad news could easily cause a bank run on any one of them which would be irreversible. But, don't worry, one of the BIG 3 will surely snatch them up!! Oh, and consumer spending was down again for the umpteenth month in a row.

BUT... Oil is now back under $100/bl mostly because folks are staying home and not spending what they don't have (or just lost). I heat with oil and have already told my wife and kids that I don't plan on setting the thermostat over 60 degrees this winter so they better get used to wearing the leg warmers and the parkas.

As is generally the case with market downswings, TREASURIES got a HUGE boost today as investors would rather make a pittance than lose their shirts. TNOTE yield dropped by over .20 today closing at 3.58% , down from the morning open of 3.81%. So, it was a GREAT day for rates as I saw an improvement of at least .25 of a discount point. But, really , if people keep losing their downpayments and reserve capacity (or just there confidence to make a move) to these market swings, rates won't matter if folks can't qualify. Kind of a catch 22 isn't it??

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

After a modest gain to the market yesterday based on the "rumors" that Congress had reached "an agreement in principle" on the BAILOUT plan, today reveals that the plan has again reached an impasse as not all share the president's plea to "rise to the occasion and pass the Bill". While there are many points still in discussion, investors cautiously await some finality on this issue. It may not come today, but all the major players think something will be done by Monday. This sentiment was compounded by the NATIONS LARGEST EVER BANK FAILURE. We all expected Washington Mutual to the next victim of bad mortgage lending decisions, and it was seized by the FDIC last night and it's assets sold to JP Morgan Chase. Once again Chase has "come to the rescue". You remember that JP Morgan also purchased the assets of Bear Stearns after it was taken over the FED. Chase has now regained it's position as the number 2 bank in the US based on assets. Yes, we did see it coming, but most had expected a different player such as Wells Fargo to be the acquirer. Questions are now resurfacing as to the health of 2 other major mortgage players......National City and Wachovia. Both have already written off billions and are looking to bolster their loss provisions for the 3rd quarter. Are they next?

After yesterday's 10 year TNOTE yield run up to 3.87%, yield is now fluctuating near the 3.80% which should aid mortgage rates, bringing them down to the range prior to yesterdays trade activity. Bonds are again enjoying increased activity as the market struggles to get some decision on the bailout.

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

There was a better tone to the market today. It was really quiet following the past 2 days sell off, ending with a slight loss after wide hourly swings throughout the day. This reflects investors attitude toward the still questionable bailout proposal. Both Paulson and Bernanke appeared on the Hill today answering more questions suggestioning that this plan doesn't have the support predicted. I understand from an article I read that Democrats are looking to cut the plan way back. Whatever happens, it needs to happen now. The NAR reported a bigger than expected drop in existing home sales. Again.

Pricing changed several times today mirroring the TNOTE yield as it fluctuated up and down before finally settling virtually unchanged from yesterday. (maybe a bit less than 1/8 PT increase to pricing)

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

I know, I know, I didn't blog yesterday. I guess I was in one of those moods where the market looked so horrible I really didn't have the words to describe it. Today looks no better, but....I can't leave my faithful blog readers in the dark for 2 business days!!

No real answers on the Fed bailout proposal came out today and that has kept investor concerns that the "big bailout" wasn't really necessary in play in a big way. Congress has to act quickly (could be difficult for them) if the market questions are to be answered and some positive direction gained.Other news adding to market woes focuses on a record year over year drop in Home prices and another consecutive monthly drop from June to July. August data does not suggest anything different.

We are seeing signs that there could be a glimpse of the sun coming. Fannie and Freddie (or US Mortgage Co 1 and 2) have again hinted that there will be no choice but to loosen some the NOOSE TIGHTENING (or guideline restrictions) that has occurred since the big bust.

When you look at current National Average Mortgage rates for 30 yr terms, you are seeing roughly 6.25% which is up almost .375% from a week ago. BUT MY LENDER WITH THE LOWEST RATES IS OFFERING A 5.875% PAR RATE TODAY,SO RATES ARE STILL BELOW 6%.

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

So, now the news on the street is that the government is to form "a home for bad debt". Everything soared after this rumor hit the wires. This move would "clean the slates" for BANK BOOKS that are a deep shade of red these days. No one really knows exactly how this would affect each of us . Are we now going to be the owners of a multibillion dollar LOSS HAVEN?

Anyway, investors sure did react quickly after this came out. It seems as though all sectors benefited as well as BONDS. However, there is evidence that LONG term bonds (IE 10 yr note) will fall in the wake of this news. Yield closed today at 3.44% up slightly from Wednesday's close at 3.42%. I am reading news that is suggesting post close activity is driving yield up closer to 3.53% range, so it is a safe bet that rates will reflect this by the morning.

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

Wow!! The stock market is down close to 10% in the last few days. After some "phantom" optimism yesterday helped the DOW gain back some of the prior days 500+ point hit, it was all eaten away again by the taxpayer acquisition of AIG. There really appears to be no good news on the economic front. Doubt looms large that the Federal Government can really keep the American Banking System from further collapse. The DOW now sits at 10,609, 80 points away from the 52 week low.Today's loss "on paper" was reported at $700 billion, so I guess the Government's 85 BILLION buyout dollars was small in comparison. Look for Washington Mutual's fate to be the next "sector shaker".

So where is the silver lining? BONDS ROSE to "PRE AIG" announcement levels. Yield was up and down today, but settled at 3.41, down .08 from last night's close. I still think there is further improvement in rates to be seen over the next few weeks. BUT 30 YEAR RATES ARE STILL at 5.5% and 15 year rates today were at 5.375%.

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

After preaching no tax dollars to bailout AIG, the FED flipped today and pumped 85 BILLION into it and now owns a position in the company at 80%. In another Fed moment today, the FOMC kept the key bank rate at 2% and therefore prime remains at 5%. This was contrary to investors hopes after BONDS had pretty much priced a rate reduction into yesterdays big rally. The Fed did hint that it would act if financial woes continue. Other good news out that consumer prices dropped for the first time in 2 years (primarily due to oil) helped stocks regain some of yesterdays 500 point loss. As a result of stock gains, bonds had a bit of trouble after the Fed decisions today. There was slight pricing adjustment but nothing that really had any significant impact.

Stay tuned to what should be a pretty interesting week with lots of earnings news. There could be daily swings so act accordingly.

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

I'm sure you've all read or watched news reports about the weekend activities affecting WALL ST. Lehman Bros. has officially filed for Chapter 11 bankruptcy protection and Bank Of America has structured a purchase of Merrill Lynch. What this action has done is to put the possibility of another FED rate cut back in play when it meets tomorrow. Prime rate is now at 5% and the key bank to bank interest rate is at 2%, both lowest in several years. There are murmurs out there that the FED may feel the need to once again lower the key rate, some say by at least 1/4 pt and others say maybe a more aggressive cut by 1/2 pt. Prime would also adjust by the same increment. Oil has made a significant pull back in the wake of all this financial turmoil and is now hovering around $95/BL, a 35+% drop from highs just a few months go. With the Financial sector demise, comes strong gains in Treasury investments  as the 10 Year TNOTE yield has dropped sharply, now near 3.52% after Friday's close at 3.73%. The 52 week low of 3.28% is in sight, as the yield has dropped over 2/10ths since Friday. Rates are sure to change at some point this afternoon as the market struggles to fully comprehend all this news and the possible Fed action coming tomorrow.

It certainly is tough to watch the devaluation of the market and other news today that industrial production output dropped much more than expected has helped to fuel the retreat from stocks today. I have heard reports that 90% of American financial deposit holders do have sufficient liquidity to cover their deposits and I do hope that there won't be a "run on banks" in the upcoming weeks. There must be a light at the end of the tunnel somewhere ahead!

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

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

There will be no Friday or weekend rally today. Payrolls were down for the 8th straight month as unemployment jumped well more than expected now over 6% and at a new 5 year high.This confirms investors fears that there will be no late year recovery.Merrill Lynch has also been downgraded to "sell" as there are indications of new losses to go along with 5 plus billion in writedowns that they reported 2 months ago. Even oil's new low below $108/BL did nothing to stem the selling binge yesterday and today. Fresh news of record delinquency rates on mortgages has helped fuel the pessimism. Almost 10% of all American Homeowners with Mortgages are now at least 30 days behind on their payments.

After closing at 3.64% yesterday, the TNOTE yield is now moving in the 3.58% range. I believe it is safe to say that this weeks BOND rally could bring PAR rates on a fixed 30 year term back below 6% at some point in the day.

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

Aside from Walmart, which benefited from "going back to school" sales, all other retailers posted numbers much worse than expected. Applications for jobless benefits rose unexpectedly bucking the trend for a 4th straight weekly drop. Friday's overall unemployment release in now highly anticipated, but it really shouldn't show any surprises. News that the service sector grew for the first time in over 3 months and that OIL has dropped for the 5th day in a row did little to provide relief to the markets pessimism today.

Contrary to the doom and gloom existing today is that BONDS continue to strengthen and the BOND market is enjoying a 3 day rally. TNOTE yield is now hovering around 3.64%, a figure not seen for the past 5-6 months. It has continued to trend lower and this could mean a further rate reduction which may bring the 30 year term rate back below 6% by the morning.

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

Gustav came in and didn't cause the damage expected. This had driven oil down to under 110/bl for the first time in many months. All commodities are down with the energy sector the largest loser. However, financials are helping the overall "green" market with Goldman Sachs re-rating B of A as a "buy". Lehman Bros is also in the news as a Korean managed array of Private investors has been looking into acquiring the firm sending a positive tone that Lehman's exposure may be covered.

Keeping the early gains tempered was news that the manufacturing sector showed a reduction in activity and spending which was almost double expectations. Housing activity was also down to the lowest level in 8 years. This bad news really didn't spark any big souring of the market and should not cause a change to overall sentiment of the day.

As a result of reduced long term inflation concerns, Bonds are strengthening. T- NOTE yield has been dropping all morning and now stands at around 3.77% after opening in the 3.84% range. If this holds, mortgage rates should improve this afternoon.

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