I expect a mortgage rate change for the worse coming from lenders today. So if you need to lock your mortgage loan then go ahead and lock ahead of a rate change. However if you can float along rates may improve as the markets yo-yo up and down. But keep a close eye on the directions that the mortgage rates move.
If the stock market continues to rally it may be at the expense of mortgage bonds and ultimately mortgage rates.
Speaking of Wells Fargo, this earnings report comes as a surprise to most. However it should not be a surprise as Wells Fargo has been shifting bad assets to newly acquired Wachovia allowing for a better bottom line. However the biggest reason not to be surprised is the relaxed Mark-to Market accounting rules.
Now assets can be valued properly and it is reflected in better bottom lines in the financial world. Mark-to Market had a devastating affect on the balance sheets of financial companies. I expect we will see better than expected earnings reports from more banks and we will see that the banking sector really was better off than most thought.
All in all this is a healthy start to getting the financial world back on track and credit moving again.
Maybe all that stimulus, bailout/pork spending money could have been saved if Mark to Market was relaxed earlier as some people had called for last year. Unfortunately we will never know.
By Ken Watson, CMPS
President/CEO
Pierside Financial Corporation
(877) 536-9287
Ken Watson blogs at Daily Mortgage Advisor. Used under Creative Commons.
Posted April 9th, 2009 by Armen Hareyan
