{"id":4545,"date":"2008-09-19T13:26:22","date_gmt":"2008-09-19T20:26:22","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4545"},"modified":"2008-09-19T13:26:22","modified_gmt":"2008-09-19T20:26:22","slug":"mortgage-market-week-in-review-10","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4545\/mortgage-market-week-in-review-10\/","title":{"rendered":"Mortgage Market Week in Review"},"content":{"rendered":"
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I\u2019ve got to tell you, I\u2019d love to be able to write one of my Friday updates and tell you about some good news or tell you, \u201cYou know, the week was very non-eventful and everything just flowed on quite smoothly.\u201d\u00a0\u00a0\u00a0\u00a0\u00a0 That certainly didn\u2019t happen this week!\u00a0\u00a0\u00a0 To attempt to bring\/keep you up to speed on what\u2019s going on in the mortgage market, I\u2019m going to first attempt to tell you a bit about what has happened this week, then do a little question and answer session (I know, kind of scary when I answer my own questions!) and end up with some thoughts about what it means and how things look going from here.<\/span><\/span><\/span><\/span><\/div>\n

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So, what happened this week?\u00a0\u00a0 Well, frankly, the financial systems of the world almost had a total meltdown<\/strong>.\u00a0\u00a0 Let me explain.\u00a0\u00a0 There\u2019s essentially two \u201cmain parts\u201d to the financial markets.\u00a0\u00a0 There\u2019s the equity side (the stock markets) and the debt side (bonds, loans, mortgages, Fed Funds, and all other types of borrowings).\u00a0\u00a0 The equity portion of the markets got hammered, but it wasn\u2019t, with the exception of a few firms, a total meltdown.\u00a0\u00a0\u00a0 On the debt side, it really was very close to a nuclear reactor meltdown.\u00a0\u00a0 I could go on and on with details of how the Fed Funds rate (supposed to be 2.0%) jumped to 6.0%.\u00a0\u00a0 I could tell you how some treasury bonds were selling for less than what they were worth (meaning someone who bought them was guaranteed to lose money.\u00a0\u00a0 I could tell you how there were auctions for certain financial instruments and no one showed up (AT ANY PRICE.)\u00a0\u00a0 I could tell you the details about how AIG got basically an $85,000,000,000 margin call and the only way they could avoid defaulting on it and bringing down the entire financial markets was by giving 80% of the firm\u00a0to the government and paying over 12% interest on the money.<\/strong> AIG is basically paying credit card rates!\u00a0\u00a0 Let\u2019s put it this way, I\u2019ve had people ask me, \u201cWas it really that bad out there?\u201d\u00a0\u00a0 Short answer, yes, it really was that Read more<\/a><\/span><\/span><\/span><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

I\u2019ve got to tell you, I\u2019d love to be able to write one of my Friday updates and tell you about some good news or tell you, \u201cYou know, the week was very non-eventful and everything just flowed on quite smoothly.\u201d\u00a0\u00a0\u00a0\u00a0\u00a0 That certainly didn\u2019t happen this week!\u00a0\u00a0\u00a0 To attempt to bring\/keep you up to speed […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[26],"tags":[],"class_list":{"0":"post-4545","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4267,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4267\/update-on-fannie-and-freddie\/","url_meta":{"origin":4545,"position":0},"title":"Update on Fannie and Freddie","author":"Tom Vanderwell","date":"September 8, 2008","format":false,"excerpt":"Well, it happened.\u00a0 In case you haven\u2019t heard the news, Fannie and Freddie were bailed out by the Federal Government over the weekend.\u00a0\u00a0 I\u2019m not going to go over all of the details but just try to hit some \u201chigh points.\u201d So, here goes: 1. The Federal government now owns\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2723,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2723\/a-deficiency-judgement-in-arizona-not-likely\/","url_meta":{"origin":4545,"position":1},"title":"A Deficiency Judgement? In Arizona? Not Likely.","author":"Allen Butler","date":"March 8, 2008","format":false,"excerpt":"Hello again! Have\u00a0clients asking\u00a0you about short sales? I know I certainly do! In fact, it's become a big part of my business. In fact, I am conducting short sale negotiations for 3 different REALTORS, as well as 5 different clients. Unfortunately, a lot of questions have arisen lately about Arizona's\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8620,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8620\/what-happened-what-does-it-mean-and-where-do-we-go-from-here\/","url_meta":{"origin":4545,"position":2},"title":"What Happened, What Does it Mean, and Where Do We Go From Here?","author":"Tom Vanderwell","date":"May 27, 2009","format":false,"excerpt":"Wow!\u00a0 What a day in the mortgage and bond markets today.\u00a0\u00a0 I think it's a good thing to say that while a lot of us saw this coming, very few of us expected that it would happen today.\u00a0\u00a0\u00a0 Let's walk through what happened, what it means and where we go\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3251,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3251\/redefining-mortgage-disclosure\/","url_meta":{"origin":4545,"position":3},"title":"Redefining Mortgage Disclosure","author":"Brian Brady","date":"June 21, 2008","format":false,"excerpt":"Jeff Corbett announced that he launched Ratespeed this week: What is it? An anonymous, automated, transparent, mortgage program and interest rate pricing pre-qualification Search Engine widget, thingy. Why is this important? For the first time anyone can transparently access wholesale direct mortgage interest rates and program quotes without having to\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4576\/what-happened-fannie-mae-and-freddie-mac-exploded-and-many-bystanders-were-injured-in-the-blast-some-fatally\/","url_meta":{"origin":4545,"position":4},"title":"What happened? “Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally”","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Things fall apart: Kevin Hassett at Bloomberg.com is getting death threats over this news analysis:The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story. Why\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5071,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5071\/mortgage-market-week-in-review-12\/","url_meta":{"origin":4545,"position":5},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"October 17, 2008","format":false,"excerpt":"Well, here we are and it\u2019s time for another Mortgage Market Week in Review.\u00a0\u00a0 This week, we\u2019re going to talk about consumer spending, consumer confidence, the new normal, where\u2019s the bottom?\u00a0and why interest rates have had a 1 percent up and half percent down swing since last week Wednesday. Consumer\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4545"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4545\/revisions"}],"predecessor-version":[{"id":4547,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4545\/revisions\/4547"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}