Treasuries are mostly unchanged this
morning amongst
speculation that data due out later this week will point to
a slowing economy
and the worst housing slump in 16 years. Currently, the 2yr
is +.5/32 (4.792),
the 5yr is +.75/32 (4.854), and the all-important 10yr is
unchanged (4.964).
Today, albeit a minor data contributor, the Richmond Fed
Manufacturing Index is
expected to show another increase of 1pt, off of last months
+14pts. If there’s
ever a moment of uncomfortable silence while on a date,
while the dentist changes
drilling bits, or while the state trooper is writing your
ticket, you can
always break out with “……the Richmond Fed Manufacturing
Index
is a gauge of broad activity in the districts manufacturing
sector. It is a
composite index representing a weighted average of the
shipments (33% of the
number), new orders (40% of the number), and employment
(27%).”
Also, later this morning the US Treasury
will auction off $6
bln in 20yr TIPs (a TIP is a treasury inflation
protected security, whose principal increases
at the same rate as
the consumer price index). In a very broad sense, TIP
auctions can show investor
sentiment with respect to inflation.
In the ever changing credit markets we
live in, investors
have been changing the guidelines for which they will
purchase loans. On
Friday, First Franklin announced changes to their
underwriting guidelines,
which include (per their website):
·
Regardless of
CLTV, First Franklin
no longer offers subordinate financing. This includes both
First Franklin and
non-First Franklin 2nd liens with either our Core
or Alt-A products.
·
The 3/27 ARM
product has been
discontinued. The 5/25 ARM product is available and not
affected by this change.
·
The Alt-A Monthly
Option ARM is no
longer available. Our Hybrid Option ARM and Fixed Payment
Option loans are
unchanged and available with full doc, stated and no ratio
documentation types
for purchase, rate and term or cash-out refinance
transactions.
For more information visit First
Franklin’s website;
click here
