{"id":5161,"date":"2008-10-24T09:40:50","date_gmt":"2008-10-24T16:40:50","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=5161"},"modified":"2008-10-24T09:40:50","modified_gmt":"2008-10-24T16:40:50","slug":"mortgage-market-week-in-review-13","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5161\/mortgage-market-week-in-review-13\/","title":{"rendered":"Mortgage Market Week in Review"},"content":{"rendered":"
\n

Here we are on Friday again.\u00a0 That means that it\u2019s time to try to summarize what\u2019s going on in the mortgage and finance world.\u00a0\u00a0 I\u2019m going to talk about a couple of main things:\u00a0 the economic fundamentals, some earnings reports\u00a0and the \u201cmargin calls\u201d that are going on in the equity markets.<\/span><\/span><\/span><\/p>\n

\n

<\/span><\/span><\/div>\n

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The economic fundamentals that have come out in the last week or two have all been, shall we say, poor.\u00a0\u00a0 Not just in the United States, but England, Asia and other places, the economic reports all show pretty solid evidence that we are either in or heading into (depending on where you are) a recession and that it\u2019s most likely not going to be a short recession but more likely the opposite – a long and painful one.\u00a0\u00a0 I\u2019m not going to go into the details of the different reports because it would be too depressing.<\/span><\/span><\/span><\/div>\n

\n

<\/span><\/span><\/div>\n

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Earnings Reports (or shall we say, loss reports?)\u00a0\u00a0 I\u2019m going to do something a little different this time.\u00a0\u00a0 I\u2019m going to give you the numbers and then later in the e-mail, I\u2019ll tell you who they matched with.\u00a0\u00a0 Here\u2019s the numbers:<\/span><\/span><\/span><\/div>\n

<\/span><\/span><\/div>\n
-$81,000,000<\/span><\/span><\/span><\/div>\n
-$700,000,000<\/span><\/span><\/span><\/div>\n
-$23,900,000,000<\/span><\/span><\/span><\/div>\n
+$4,370,000,000<\/span><\/span><\/span><\/div>\n
\n

(oh and these are all just for the most recent 90 days).<\/span><\/span><\/span><\/div>\n

\n

<\/span><\/span><\/div>\n

\n

Here\u2019s the choices for the companies who made them:<\/span><\/span><\/span><\/div>\n

National City Bank<\/span><\/span><\/span><\/div>\n
Microsoft<\/span><\/span><\/span><\/div>\n
Fifth Third Bank<\/span><\/span><\/span><\/div>\n
Wachovia<\/span><\/span><\/span><\/div>\n
<\/span><\/span><\/div>\n
I\u2019ll tell you a bit further down which one did which\u2026\u2026<\/span><\/span><\/span><\/div>\n
<\/span><\/span><\/div>\n
\n

Now for a few thoughts about what\u2019s going on in the equity markets and how that has an impact on the mortgage and real estate markets.\u00a0\u00a0 Here\u2019s an overview of it:<\/span><\/span><\/span><\/div>\n

\n

1. The mortgage backed securities market is a highly leveraged market. <\/span><\/span><\/span><\/div>\n

\n

2. As approximately 5 to 7% (that\u2019s right, it\u2019s only 5 to 7% of all mortgages that are causing this problem) go bad, the value of the mortgage backed securities (also known as Collateralized Debt Obligations or CDO\u2019s) fall dramatically.\u00a0\u00a0 Since they are highly leveraged, the investors have to come up with additional cash, typically lots of it. <\/span><\/span><\/span><\/div>\n

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3. That is, in an oversimplified nutshell, what is causing the significant sell offs in the stock market and the bond market at the Read more<\/a><\/span><\/span><\/span><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Here we are on Friday again.\u00a0 That means that it\u2019s time to try to summarize what\u2019s going on in the mortgage and finance world.\u00a0\u00a0 I\u2019m going to talk about a couple of main things:\u00a0 the economic fundamentals, some earnings reports\u00a0and the \u201cmargin calls\u201d that are going on in the equity markets. The economic fundamentals that […]<\/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":[258,178,259,159],"class_list":{"0":"post-5161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"tag-fifth-third","8":"tag-mortgage-rates","9":"tag-national-city","10":"tag-wachovia","12":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":5071,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5071\/mortgage-market-week-in-review-12\/","url_meta":{"origin":5161,"position":0},"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":[]},{"id":5465,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5465\/why-i-think-the-jobs-report-wont-be-helpful-for-mortgage-rates\/","url_meta":{"origin":5161,"position":1},"title":"Why I think the Jobs report won’t be helpful for mortgage rates….","author":"Tom Vanderwell","date":"November 7, 2008","format":false,"excerpt":"Okay, let's face the fact that the jobs reports and the reports from Ford and General Motors that came out today were ugly.\u00a0\u00a0 Not just ugly, downright nasty. In normal economic times, that sort of bad economic news would send people fleeing stocks and going into the bond market.\u00a0\u00a0 That\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":8620,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8620\/what-happened-what-does-it-mean-and-where-do-we-go-from-here\/","url_meta":{"origin":5161,"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":1889,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1889\/arms-look-scary-before-they-look-good-or-how-wall-street-dupes-the-little-guy\/","url_meta":{"origin":5161,"position":3},"title":"ARMs Look Scary Before They Look Good or (How Wall Street Dupes the Little Guy)","author":"Brian Brady","date":"September 4, 2007","format":false,"excerpt":"I don't look real smart today, do I ? Mortgage rates in general took a fairly substantial dive during the previous week with longer term rates dropping double digits in most cases and some rates returning to mid-2006 levels. However, the Mortgage Bankers Association reported a spectacular increase in the\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2529,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2529\/amaze-your-friends-why-the-surprise-fed-funds-rate-drop-isnt-impacting-mortgage-rates\/","url_meta":{"origin":5161,"position":4},"title":"Amaze Your Friends : Why The “Surprise” Fed Funds Rate Drop Isn’t Impacting Mortgage Rates","author":"Dan Green","date":"January 22, 2008","format":false,"excerpt":"Advanced Fiscal Literacy For Real Estate Professionals The Fed Funds Rate is a fair proxy for economic health.\u00a0 When the economy is growing, the FFR\u00a0rises to fight inflation. When the economy is slowing, the FFR\u00a0falls to fight \"the absence of inflation\" (i.e recession). If inflation is the enemy of mortgage\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":4971,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4971\/bloodhound-blog-radio-fundamentals-trumping-headline-risk\/","url_meta":{"origin":5161,"position":5},"title":"Bloodhound Blog Radio: Fundamentals Trumping “Headline” Risk","author":"Brian Brady","date":"October 15, 2008","format":false,"excerpt":"Sean \"Rocky\" Purcell and I discussed his big prediction of the stock market bounce and I repented for my recommendation to stay \"unlocked\" in hopes of lower mortgage rates. Download and enjoy this light-hearted 17 minute show We felt the near-term future for stock and bond markets would depend on\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5161","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=5161"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5161\/revisions"}],"predecessor-version":[{"id":5163,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5161\/revisions\/5163"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=5161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=5161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=5161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}