![\"pipeline-press\"](\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/pipelinepress4.png\" "\\"pipeline-press\\"")
<\/a><\/p>\nA hole has been found in the nudist camp wall – the police are looking into it. There is also a hole in Harrisburg, Pennsylvania’s budget, and the city is considering filing Chapter 9 bankruptcy. (The capital of PA, with a population of 47,000, has $68 million in debt service payments this year due to the construction of a waste incinerator, which is four times more than what the city expects to raise through property taxes and $4 million more than the city’s entire proposed operating budget!)<\/p>\n Yesterday’s stock market drop dominated the financial news. And a slowing economy helps rates and mortgage loan agents, right? (It’s a two-edged sword.) So the markets did not pay much attention to Non-Farm Productivity increasing over 6% during the fourth quarter of 2009. Efficiency in the last nine months of 2009 soared at the fastest pace since 1966 as companies cut worker hours even after sales stabilized. And Factory Orders for November were up 1%, better than expected. But the focus, and one of the reasons given for stocks taking a beating, was on Jobless Claims which hit a 7-week high.<\/p>\n There is certainly a lot to be nervous about. There is the concern that around-the-world budget deficits will need to be financed by issuing more debt.. California, with the 8th largest economy in the world, is continuing to have budget problems. On top of all that, oil prices declined over 5% while gold prices also fell, down over 4%. The dollar was weaker to the yen, but firmer to the euro as the risk aversion trade returned, and this helped Treasuries and mortgage security prices, dropping rates to December levels.<\/p>\n Forecasts for today’s Non-Farm Payroll number centered on a gain of 15,000, although the ADP number from Wednesday showed that the private sector lost 22,000 jobs, so the difference will be in the government arena. As it turned out, Non-Farm Payrolls fell 20,000 in January, and the December numbers were revised downward from -85k to -150k (Nov’s went from +4 to +64k). Conversely the Unemployment Rate dropped to 9.7%, once again highlighting the fact that a sharp increase in the number of people giving up looking for work helped to depress the jobless rate. After this news, the 10-yr is at 3.64% and mortgage prices (and the 5-yr Treasury) are worse by about .125.<\/p>\n Does volatility in bonds or stocks help or hurt the markets? Although volatility has little lasting impact on markets, in the long run volatility makes ordinary investors less inclined to trust markets. And aversion to risk makes capital more expensive, as we are seeing now, and in turn the economy can become less dynamic. On the flip side, traders love volatility, although they tend to overestimate their knowledge of finance and the accuracy of their predictions. And overconfidence can encourage excess trading, and in a down market this can lead to “chasing losses” – if you’ve lost some, it is tempting to make big bets in an attempt to get your money back.<\/p>\n Steady as she goes. For the week ending yesterday, the Federal Reserve’s MBS program was a net buyer of $12 billion agency MBS ($17.6 billion gross), which was the same as the previous week. The bulk of the purchases were 4.5% securities, which are mostly comprised of 4.75-5.125% 30-yr conventional mortgages. Program-to-date now stands at $1.173 trillion.<\/p>\n more news on Andrew Cuomo \u2013 BofA, Fidelity National Financial, GMAC, loan repurchase problem, and joke of the day \u2026 <<< CLICK HERE TO CONTINUE<\/a><\/strong><\/p>\n \u00a0 A hole has been found in the nudist camp wall – the police are looking into it. There is also a hole in Harrisburg, Pennsylvania’s budget, and the city is considering filing Chapter 9 bankruptcy. (The capital of PA, with a population of 47,000, has $68 million in debt service payments this year due […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-281826","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/281826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=281826"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/281826\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=281826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=281826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=281826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"rob-chrisman-daily\"](\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/robchrismandaily4.jpg\" "\\"rob-chrisman-daily\\"")
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