Market Comment

Bond prices have been volatile this morning, starting the day slightly higher before dropping 41 basis points and then improving again slightly.

In the news, the Case-Shiller Index showed that home prices appear to be stabilizing. There are still a lot of great opportunities for buyers, especially when you factor in the low rates, affordable home prices, and Homebuyer Tax Credit. But this alignment of stars won't last.

Currently, the Bond is trading between important levels of support and resistance. Therefore, I recommend floating for now. I will let you know if a change of course is necessary.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds have traded in a wild range over the last day…and with the Fed's Mortgage Backed Security buying program nearing an end, don't expect the volatility to slow.

In economic news, the final reading on Fourth Quarter Gross Domestic Product came in lower than the previous advanced reading. Also in the news, Consumer Sentiment was reported slightly better than expectations.

Currently, prices are trying to stabilize near support. Therefore, I recommend floating for now. But be prepared to lock if the market becomes volatile once again.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

ALERT to LOCK: Treasury bond sales have been poorly received all week and today it is continuing. Locking your loan if you have not already done so is the prudent thing to do. The Fed is also on the last few days of their purchasing Mortgage Backed Securities. This is a double whammy and rates are rising.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

ALERT to LOCK: Treasury bond sales have been poorly received all week and today it is continuing. Locking your loan if you have not already done so is the prudent thing to do. The Fed is also on the last few days of their purchasing Mortgage Backed Securities. This is a double whammy and rates are rising.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds are lower today and pushed below support levels this morning, but have since moved back to near those levels. There are no economic reports due for release today, so Bonds will respond to technical signals and the trading action in Stocks.

Some of the selling pressure in Bonds comes on the heels of yet another credit rating agency raising concerns on the deteriorating credit profiles of AAA rated countries. Fitch Ratings, like Moody's a couple of days ago, says the U.S. has moved substantially closer to losing its AAA credit rating.

The much publicized health care bill being voted on this weekend could be the catalyst that ignites the correction in Stocks lower, which could help the Bond markets next week. I will start the day with a Floating recommendation, and as always, I will monitor the market action throughout the day.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds are lower today and pushed below support levels this morning, but have since moved back to near those levels. There are no economic reports due for release today, so Bonds will respond to technical signals and the trading action in Stocks.

Some of the selling pressure in Bonds comes on the heels of yet another credit rating agency raising concerns on the deteriorating credit profiles of AAA rated countries. Fitch Ratings, like Moody's a couple of days ago, says the U.S. has moved substantially closer to losing its AAA credit rating.

The much publicized health care bill being voted on this weekend could be the catalyst that ignites the correction in Stocks lower, which could help the Bond markets next week. I will start the day with a Floating recommendation, and as always, I will monitor the market action throughout the day.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds are off their best levels, but are still trading slightly higher after a report showed that inflation remains quite low for now.
The Consumer Price Index, which measures inflation at the consumer level, came in just below expectations for February. Also in the news, Initial Jobless Claims were reported inline with expectations. Overall, however, the labor market continues to be very weak.
For now, I recommend floating, as I monitor the day's news. I will let you know if a change of course is needed.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds are off their best levels, but are still trading slightly higher after a report showed that inflation remains quite low for now.
The Consumer Price Index, which measures inflation at the consumer level, came in just below expectations for February. Also in the news, Initial Jobless Claims were reported inline with expectations. Overall, however, the labor market continues to be very weak.
For now, I recommend floating, as I monitor the day's news. I will let you know if a change of course is needed.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Stimulus Deadline

Attention Homebuyers: Double-Barrel Stimulus Deadlines

Threaten Rates and Affordability; The Time to Act is NOW!

The great author and speaker Og Mandino once said:

"I will act now. I will act now. I will act now."

This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion.

First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result.

The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers.

Just How Much Will Waiting Cost?While no one knows for certain what the future holds, two things appear clear. Home loan rates will likely be higher in the future, and free money from the government will be gone. These deadlines will affect both affordability to purchase and the opportunity to refi.

In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%.

For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards. If you or anyone you know is looking to purchase or refinance a home, waiting could be costly!

Act now...so you can save later!

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112Leonard Winslow,

Stimulus Deadline

Attention Homebuyers: Double-Barrel Stimulus Deadlines

Threaten Rates and Affordability; The Time to Act is NOW!

The great author and speaker Og Mandino once said:

"I will act now. I will act now. I will act now."

This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion.

First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result.

The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers.

Just How Much Will Waiting Cost?While no one knows for certain what the future holds, two things appear clear. Home loan rates will likely be higher in the future, and free money from the government will be gone. These deadlines will affect both affordability to purchase and the opportunity to refi.

In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%.

For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards. If you or anyone you know is looking to purchase or refinance a home, waiting could be costly!

Act now...so you can save later!

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112Leonard Winslow,

Market Comment

So far this morning, Mortgage Bonds are trading higher.
There are no economic reports due out today, but the Treasury Department will auction off $40 Billion worth of 3-Year Notes at 1 pm Eastern Time, which may move the markets depending on how it's received.
For now, I recommend floating, as I continue to monitor the markets. I will let you know if a change of course is warranted later in the day.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

So far this morning, Mortgage Bonds are trading higher.
There are no economic reports due out today, but the Treasury Department will auction off $40 Billion worth of 3-Year Notes at 1 pm Eastern Time, which may move the markets depending on how it's received.
For now, I recommend floating, as I continue to monitor the markets. I will let you know if a change of course is warranted later in the day.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Yesterday, Bond prices dipped down to touch the 25-Day Moving Average before eventually climbing higher to close above the 100-day Moving Average. A similar pattern may be developing today.

In the news today, the ADP Employment Report showed 20,000 private-sector jobs lost in February. The news comes just days before the government releases its official Jobs Report on Friday.

Currently, prices are attempting to hold onto support at the 100-Day Moving Average. Therefore, I recommend floating for now. But be prepared to lock if events later today require a change of course."

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Yesterday, Bond prices dipped down to touch the 25-Day Moving Average before eventually climbing higher to close above the 100-day Moving Average. A similar pattern may be developing today.

In the news today, the ADP Employment Report showed 20,000 private-sector jobs lost in February. The news comes just days before the government releases its official Jobs Report on Friday.

Currently, prices are attempting to hold onto support at the 100-Day Moving Average. Therefore, I recommend floating for now. But be prepared to lock if events later today require a change of course."

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds are trading near unchanged levels, thanks to tame consumer inflation data. The Personal Consumption Expenditure Index met expectations for January, and the year-over-year rate remained well within the Fed's comfort zone.

In other news, Personal Income came in well below expectations, but Personal Spending was reported above expectations. The bump in spending came at the expense of savings, as the Personal Savings Rate fell to the lowest savings rate since October 2008.

For now, I recommend floating. But be prepared to lock, since the Bond is trading near a formidable ceiling of resistance at the 100-Day Moving Average. I will keep you posted on any major developments.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds are trading near unchanged levels, thanks to tame consumer inflation data. The Personal Consumption Expenditure Index met expectations for January, and the year-over-year rate remained well within the Fed's comfort zone.

In other news, Personal Income came in well below expectations, but Personal Spending was reported above expectations. The bump in spending came at the expense of savings, as the Personal Savings Rate fell to the lowest savings rate since October 2008.

For now, I recommend floating. But be prepared to lock, since the Bond is trading near a formidable ceiling of resistance at the 100-Day Moving Average. I will keep you posted on any major developments.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds remain near unchanged so far this morning, after the markets digested the economic news of the morning.

In the news today, Gross Domestic Product for the 4th Quarter was reported at the best reading in more than 6 years. Also, Existing Home Sales came in less than expected and the inventory of unsold homes rose to a 7.8-month reading.

For now, I recommend floating, as the Bond battles a tough ceiling of resistance at the 100-day Moving Average. I will let you know if a change of course is needed.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Mortgage Bonds remain near unchanged so far this morning, after the markets digested the economic news of the morning.

In the news today, Gross Domestic Product for the 4th Quarter was reported at the best reading in more than 6 years. Also, Existing Home Sales came in less than expected and the inventory of unsold homes rose to a 7.8-month reading.

For now, I recommend floating, as the Bond battles a tough ceiling of resistance at the 100-day Moving Average. I will let you know if a change of course is needed.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Bond prices touched the ceiling of resistance at the 100-Day Moving Average this morning, before retreating below the 25-Day Moving Average.

In the news, New Home Sales for January were reported below expectations. While weather was undoubtedly an issue, it does underscore the persistent weakness in the housing market.
Currently, Bonds have support nearby at both the 50- and 200-Day Moving Averages.

Therefore, I recommend floating for now, as I watch to see how Fed Chairman Bernanke’s Congressional testimony as well as today’s Treasury auction are received by the markets."

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

Market Comment

Bond prices touched the ceiling of resistance at the 100-Day Moving Average this morning, before retreating below the 25-Day Moving Average.

In the news, New Home Sales for January were reported below expectations. While weather was undoubtedly an issue, it does underscore the persistent weakness in the housing market.
Currently, Bonds have support nearby at both the 50- and 200-Day Moving Averages.

Therefore, I recommend floating for now, as I watch to see how Fed Chairman Bernanke’s Congressional testimony as well as today’s Treasury auction are received by the markets."

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112