EXPU: Mortgages Still Have Lots of Life — Rates Expected to Dip Again
Written by StockGuru on July 4, 2009
Why are the rates expected to go down?
Yields on Fannie Mae and Freddie Mac mortgage securities have declined to the lowest in more than three weeks.
This signals that interest rates on new-home loans will fall, too, helping to ease the housing slump.
Yields on Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds tumbled 0.18 percentage point to 4.53 in New York. This is the lowest since June 3, amid a plunge in rates on benchmark Treasuries.
This followed data showing the employment market is weakening, suggesting inflation will remain subdued.
“People are still losing jobs,” Michael Franzese, head of government bond trading at Standard Chartered in New York. “Until we start getting that number down, it means the economy is not doing as well as people thought it was.”
Initial jobless claims rose by 15,000 to 627,000 in the week ended Saturday, the Labor Department said. Economists had forecast a decline to 600,000.
This is not really news for most of us. We know through friends and neighbors jobs are not getting any easier to find and people are still being laid off.
As long as this scenario continues we will probably not see significantly higher interest rates.
EXPU continues to have ROOM TO GROW.
Company Contact:
The Expert Group, Inc.
17501 Biscayne Blvd. Suite 5-E
North Miami Beach, FL 33160
Telephone:305-949-LOAN (5626)
Fax: 305-675-5788
info@expertfinancing.net
Investor Relations
David Elias
516-967-0205
Safe Harbor
Except for the historical information contained herein, the matters set forth in this release, including the description of the company and its products offerings, are forward-looking statements within the meaning of the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the historical volatility and low trading volume of our stock, the risk and uncertainties inherent in the early stages of growth companies, the company’s need to raise substantial additional capital to proceed with its business, risks associated with competitors, and other risks detailed from time to time in the company’s most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.
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