Mortgage backed securities (MBS) prices are higher (rates lower) before the sale of $8 billion of 5yr inflation protected securities and a government announcement of how much the U.S. plans to raise in 3 auctions next week.
The Treasury is expected to announce it will sell $99 billion in 2, 5, & 7yr notes as the administration is borrowing unprecedented amounts to finance bank bailouts, stimulate the economy and service a record deficit. The Fed will buy government securities today, its second round of purchases this week, in an effort to revive credit markets that have seized up.
Jobless claims rose 27K to 640K, slightly higher than expected, indicating the labor market continues to deteriorate. The rate of new layoffs is severe but is at least steady, however continuing claims show increasing trouble, up 93K to a 12th straight record of 6.137 million collecting benefits.
Record low mortgage rates and a foreclosure driven price plunge are making homes more affordable according to the National Association of Realtors (NAR) affordability index, which tracks mortgage rates, home prices and incomes. The index is at its highest level in 20 years. Existing Home Sales fell 3% to an annual rate of 4.57 million, lower than expected, dashing hopes of a spring housing recovery. The median sales price did increase a larger than expected 4% in March.
The FHA's Hope for Homeowners program, while billed as beneficial to mortgage investors, may need retooling because it is proving ineffective in cutting losses because it focuses on lowering payments rather than reducing homeowner debt. The congressional approved program was designed to help 400,000 borrowers when it started in October, has closed only 51 loans!
The Treasury is expected to announce it will sell $99 billion in 2, 5, & 7yr notes as the administration is borrowing unprecedented amounts to finance bank bailouts, stimulate the economy and service a record deficit. The Fed will buy government securities today, its second round of purchases this week, in an effort to revive credit markets that have seized up.
Jobless claims rose 27K to 640K, slightly higher than expected, indicating the labor market continues to deteriorate. The rate of new layoffs is severe but is at least steady, however continuing claims show increasing trouble, up 93K to a 12th straight record of 6.137 million collecting benefits.
Record low mortgage rates and a foreclosure driven price plunge are making homes more affordable according to the National Association of Realtors (NAR) affordability index, which tracks mortgage rates, home prices and incomes. The index is at its highest level in 20 years. Existing Home Sales fell 3% to an annual rate of 4.57 million, lower than expected, dashing hopes of a spring housing recovery. The median sales price did increase a larger than expected 4% in March.
The FHA's Hope for Homeowners program, while billed as beneficial to mortgage investors, may need retooling because it is proving ineffective in cutting losses because it focuses on lowering payments rather than reducing homeowner debt. The congressional approved program was designed to help 400,000 borrowers when it started in October, has closed only 51 loans!
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