203199 Resource 178438 178984 178982 1210097233753 1210107162223 Controlled BOND MARKET CONTINUES TO IMPROVE

Home Loan Rates Moving Lower - Float Today

<p>Bonds are moving higher this morning&nbsp;after bad news was released&nbsp;for&nbsp;Fannie Mae,&nbsp;the largest provider of US home financing.&nbsp; The company said it&nbsp;lost $2.19 Billion in the first quarter due to the current housing and credit crisis, which equates to a loss of $2.57 a share compared with a profit of 85 cents a year ago.&nbsp; And like Freddie Mac, the company plans to raise capital and cut its dividend.&nbsp; Stocks traded lower on the news, pushing money into Bonds and helping Bond pricing improve.&nbsp;&nbsp;</p><p>In other headlines, oil hit a new record high of $120.93 this morning.&nbsp; Oil prices have doubled over the past twelve months, pushing the average price at the pump to $3.60 a gallon.&nbsp; Goldman Sachs is forecasting that black gold could rise to&nbsp;$150-$200 a barrel in the next twelve months.&nbsp; If this plays out as they suggest,&nbsp;the inflationary effects of high oil prices could pressure Mortgage Bonds lower, causing&nbsp;home loan rates to move higher...so this&nbsp;will be&nbsp;a story to watch.&nbsp;</p><p>For now, Bonds continue to ride a dual&nbsp;floor of support at the 50 and 100-day Moving Averages.&nbsp; We will continue to Float for now, and watch how the Bond behaves near this strong floor.</p> 10 application/xml false home loan rates Mortgage bonds Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727; .NET CLR 3.0.04506.30; .NET CLR 3.0.04506.648) 127.0.0.1 127.0.0.1 aheitland 75.160.24.218 false true false false true 178975 false false true false false false true 178438 blog blogsite/BestFlagstaffHomes/web