Final Financial Update/ of 5/ Week of August 24, 2009

Good Morning Everyone and Happy Friday! The Dow appears to be ending it’s record-setting pace of 8 straight days of gains. On August the 13th, the Dow closed at 9,398 only to drop about 250 points in the next 2 trading days. From that time until yesterday, the Dow has been in positive territory every day, rising about 450 points in 8 days of trading. Now that’s pretty impressive. Today, the ride seems to be coming to a stop with the Dow down about 70 points as of this writing. The good news in all of this is the credit markets which have actually gained ground also during this time. Our 30 year conforming rate of 4.875 on the 18th of August (the first day of the rally) represented a cost of .215 – today it’s at a cost of .172! I think we all can count ourselves fortunate. What will happen from here if the stock market gives back those 450 points plus some? We may see better pricing, or we may stay the same. That’s all the fun of financial markets, but odds are, we’ll see improved pricing.

Today’s economic news releases had no surprises. Personal income was flat for July, slightly less than the .1% increase for which analysts were hoping. It is quite a bit better than the 1.3% decline registered in June. Personal spending increased .2% in July, in line with expectations. The NASDAQ is not off as much percentage wise as the Dow due to positive forecasts from Dell and Intel. Still, there just doesn’t seem to be enough fuel to rocket the markets higher from here, so a little relief is long over due. Look for improved pricing today if this fall in equity markets continues.

I will be in the office for the morning, but will be outta here at lunch time. If you need me, call me here at the office up until noon, and then on my cell. Have a terrific Friday and a very restful and relaxing weekend! I think we have a big week ahead of us next week!