Old News Vs New News ...

Todays news

Old news: Durable Goods Orders Shrink Dramatically
Against the backdrop of uncertain financial markets, the economy continued to show weakness, according to economic reports released Wednesday.


CNBC.com
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Orders to U.S. factories for big-ticket manufactured goods plunged in October by the largest amount in two years as manufacturing was battered by the overall economic weakness.

Meanwhile, American cut back their spending in October by the largest amount since the 2001 terrorist attacks(take a look at what the stock market did from Sept 2001 to Feb 2002) and the labor market remained weak, although the number of U.S. workers filing new claims for jobless benefits fell by 14,000 last week.

The Commerce Department says orders for durable goods dropped by 6.2 percent last month, more than double the 3 percent decline economists expected.

The report showed widespread declines throughout manufacturing led by decreases in autos and airplanes.

4-Week Jobless Average Moves Higher

Initial claims for state unemployment insurance benefits were a seasonally adjusted 529,000 in the week ended Nov. 22 from an upwardly revised 543,000 the previous week, the Labor Deportment said.

A Labor Department official said there were no special factors influencing the report. Analysts polled by Reuters had forecast 537,000 new claims versus a previously reported count of 542,000 the week before.
The big decline in spending in October underscores concerns that the economy is falling into a deep recession. Consumer spending accounts for two-thirds of total economic activity.

New News:
Rates on U.S. 30-year mortgages posted a record drop of 1-1/8 percentage point to 4-7/8 percent on Tuesday, after the Federal Reserve said it would implement a $600 billion plan to support the mortgage securities market.


Mortgages


30 yr fixed 5.81% 5.97%
30 yr fixed jumbo 7.29% 7.39%
15 yr fixed 5.53% 5.79%
15 yr fixed jumbo 6.45% 6.61%
5/1 ARM 5.90% 5.57%
5/1 jumbo ARM 6.17% 5.61%

Find personalized rates:


Bankrate.com


The decline on the Mortgage Point Monitor is the biggest since the data series began in 1998, according to David Beadle, president of BestInfo.

The drop is also a one-day record since at least 1988 using other data, he said.

Lower U.S. mortgage rates lifted demand for mortgage applications last week, a trade group said on Wednesday, and demand should escalate after a new broad-brushed government plan to support the housing markets.


AP
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With average 30-year fixed loan rates dropping 0.17 percentage point to 5.99 percent last week, total mortgage applications rose 1.5 percent mainly due to demand for mortgages to buy houses, according to the Mortgage Bankers Association's seasonally adjusted index.

On Tuesday, the Federal Reserve and Treasury unveiled a plan to buy up to $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac and Ginnie Mae, as well as up to $100 billion of debt issued by Fannie, Freddie and the Federal Home Loan Banks.

This massive infusion is expected ultimately to reduce U.S. mortgages rates further, as they have been hovering at high levels over risk-free government debt.

Average 30-year home loan rates fell to 5-1/2 percent on Tuesday after the government lifeline was announced, according to Bankrate.

Lower loan rates should help revive the worst U.S. housing market since the Great Depression.

Refinancing should also increase, freeing cash for consumers to spend and bolster an economy widely seen deeply in recession.

"Over time, bringing those mortgage rates down and keeping them down is a step necessary to begin soaking up the inventory of unsold homes in the marketplace," Greg McBride, senior financial analyst at Bankrate in North Palm Beach, Florida, said on Tuesday.

"Prices have been coming down but mortgage rates really haven't," he added.

"Well now, you've got both oars rowing in the same direction for you as a home buyer. This, over time, is going to get people back in the market, get people a little more willing to take the plunge into home ownership," he said.

The Mortgage Bankers Association's index of applications for loans to buy homes rose 5.3 percent last week to 261.6.

Its gauge of refinancing applications declined 2.1 percent to 1,254.0 last week.

Total mortgage applications are climbing from eight-year lows set earlier this month.

It all depends on your focus. It is obvious what is happeneing but it is my belief that they will push 30 year rates below 4.5%.

The Fed is taking on the loan portfolios off the banks books and this will allow a flow of funds to the area it is needed the most. The prices of the bank stocks do not reflect any of this yet.

You can focus on the old news..the obvious or you can focus on the new news. . In my pea brain what the Fed is doing is a game changer. I will focus on the latter
Adding to my MBI 4.99 and ABK 1.36 and UYM 12.56
Starting new position in CMI 22.27 and MTG 2.37