Travis' Video Mortgage and Financial Market Update for Jan 27th

Hello Friends!

Good day for bonds and mortgage rates, average day for stocks, and another bad day for the economy. National home price averages were released today of the 20 major markets with a year over year decline of 18%. The ugly numbers support why yesterday's "existing home sales" number expectations were exceeded, simply due to fire sale deals going on through foreclosures and short sales. The good news is for areas like Phoenix, Vegas and San Francisco that saw over a 30% decline in one year, the worst should be over as the median sales price is a now considered a fair value when gauged against the Consumer Price Index. Also good news for markets that were not hit as hard like ours here in Portland and Seattle, where a more modest decline of 4% was recorded and it still makes a lot of sense to purchase right now.

The big news today was the 2-yr Treasury Note Auction where $40 Billion were offered and surprisingly a strong showing globally and at a national investor level at the auction, made long range mortgage backed securities perform well.

Also hitting the headline was the worst consumer confidence rating in the history of tracking the index since 1967. This surprised many due to the fact that the new administration and inauguration with President Obama had taken place and the buzz of the party was still lingering. I guess the hangover has officially hit.

A lot more in the video, please watch for additional market info.

Be Blessed!

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