{"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

\n

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

\n

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

\n

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_post_was_ever_published":false,"_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":""},"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":4039,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4039\/mortgage-market-week-in-review-7\/","url_meta":{"origin":5161,"position":3},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"August 22, 2008","format":false,"excerpt":"Here we are on Friday again and it\u2019s time to take another look at what\u2019s going on in the mortgage markets. This week we\u2019re going to talk about two economic reports and two big question marks. First the economic reports from the week: 1. The Index of Leading Economic Indicators\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":5378,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5378\/mortgage-market-week-in-review-14\/","url_meta":{"origin":5161,"position":4},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"November 1, 2008","format":false,"excerpt":"I want to apologize for the delay in getting this out until Saturday.\u00a0\u00a0 Due to some technical difficulties and some new things I'm going to be implementing, Friday was spent working on computer issues.\u00a0\u00a0 Yeah, I know, a fun way to spend a Friday..... So, here we are at the\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":6049,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6049\/if-mortgage-rates-are-not-going-below-5-where-are-they-going\/","url_meta":{"origin":5161,"position":5},"title":"If Mortgage Rates Are Not Going Below 5%, Where Are They Going?","author":"Sean Purcell","date":"December 11, 2008","format":false,"excerpt":"There was an interesting post yesterday asking Why Won't Mortgage Rates Drop Below 5%?.\u00a0 Brian Brady answered the question with a supply and demand analysis and as usual, I cannot disagree with that reliable old tool (the supply and demand analysis... not Brian :) ).\u00a0 But I wonder, is there\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\/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}]}}