Mortgage Minute Febuary 11th

LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS


Conforming Limits: $100,000 to $417,000 February 11, 2009
Rates
4.75% 30-Year Fixed


NEW CONFORMING



Conforming: $417,001-$625,500
Rate: 5.625% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $729,751-$2,000,000
5 Year Fixed 5.75 %
10 Year Fixed 6.0%
Interest only available

FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30


30 Year Fixed $100,000-$ 362,000 5.00 %

$ 362,500 -625,500 5.625%

Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.


Mortgage Market Minute: The market is cruising along in sideways fashion with the FNMA 4.5% down a tick to 100.56, the FNMA 5.0% up a tick to 101.69, and the 5.5% flat at 102.22. Wednesday we get details on Trade balance. Thursday we get Retail Sales (expect -0.3%, last month -2.7%) and Jobless claims (expect 625K, after last week’s 624K). Friday we get Consumer Sentiment (expect 61.5, last month 61.5). Lots of pressure on Treasuries trying to find a home in the market – pricing will likely be under assault, which may lead MBS prices lower (and mortgage rates higher). The 10-year yield is has climbed to 3.00% (as we predicted). The slugfest on Capitol Hill continues this week, with the much-debated stimulus bill having another go in front of Senate Democrats insisting on urgency and Republicans outrage over pork. Interestingly, the real tonic for the economy’s woes may instead be being pushed off stage by the mother-of-all-red-herrings stimulus plan, for postponed by a day is the announcement detailing the potentially very effective plans for purchasing toxic assets from banks and restart frozen credit markets (see next post).Government delays “bad bank” announcement by a day. The government delayed plans until Tuesday to announce a much-discussed mechanism for purchasing toxic assets from banks, as well as additional capital for banks, a new homeowner aid program, and the expansion of the Fed's Term Asset-Backed Securities Loan Facility. The plan, according to the Wall Street Journal, includes a government partnership with the private sector to purchase toxic assets though the creation of an aggregator bank which could purchase up to $500 billion in toxic assets. Sometimes called a 'bad bank', the main difference is that both government and the rescued firm will bear some of the risk in the transaction to ensure that the U.S. taxpayer does not overpay for the toxic debt. The aid to homeowners could be between $50-$150 billion in the form of loan modifications. TARP will be expanded to student loans, credit card debt and auto loans. The FDIC may also expand the types of debt it guarantees. Treasury Secretary Geithner was expected to unveil the details of the package on Monday, but President Obama delayed the announcement in order to focus energies on getting the Senate to pass the stimulus package being hotly debated.Bond market focusing on consuming large supply of TreasuriesThis week, there will be tremendous focus on bonds, as the U.S. Treasury pours supply onto the markets. The markets will also be affected by details being released on proposed government plans to resolve the financial problems plaguing the U.S. economy. Treasury Secretary Timothy Geithner this week plans to hold a press conference on new rescue initiatives aimed at bringing further stability to U.S. financial markets. The administration is also suggesting changes to the mark-to-market accounting system. RBS Greenwich currency strategist Alan Ruskin said the expectations of the changes are increasing risk appetite, helping to boost equities and dragging down the U.S. dollar. Traders are expecting bond markets to be in a tough position next week as more investors move back into equity markets and the U.S. government continues spending money. The Treasury will sell $151 billion in bonds, which will include three and six-month bills, three-year notes, 10-year notes and 30-year notes. Although there exists the potential for U.S. Treasury yields to move higher, traders are expecting gains to be limited. Guy LeBas, fixed income strategist at Janney Montgomery Scott, said if 10-year yields rise above 3.0%, the market will put pressure on the Fed to come in and buy bonds. "The last thing the treasury wants is for yields to rise," he said. "Yes it's going to be a challenging week, but the Fed is still anchoring the yield curve."