June 23rd, 2010 11:10 AM by BILL WILBANKS
This morning's worse than expected May monthly housing report (worst monthly drop since monitoring started in 1963, down 1/3 to an annualized 300,000 units) drove the DOW down over 100 yesterday and the 10 year treasury down to a 3.11% yield so far this AM. Any winners here? Yes, the fixed rates picked up some speed (down about 0.125% for those lenders that didn't do it late Tueday) on the flow of money from equities into bonds. This should validate, at least initially, the actual impact of the "program ending" effect of the Fed's first time buyer $8,000 tax credit that ended April 30th. Military buyers got a slight extention on that date but the rest of us are out. One third, that's pretty good circumstantial evidence of the effect of water seeking it's own level after the life raft passes by I'd say. If you need a mortgage you're the winner. . . don't waste it.