Update #1/ Week of August 31, 2009

Good Morning Everyone and Happy Monday! Last week we talked about the tug-o’-war going on between the bulls and the bears on Wall Street. Apparently the bulls are finally loosing their grip as the market is finally pulling back today as expected. It’s certainly a sign of the times that we are even discussing the stock market in China, but that is the big news story of the day. The Shanghai Composite last night dropped almost 7%, and Hong Kong’s Hang Seng lost over 600 points. This created somewhat of a sour mood when traders in New York got to work this morning. The Dow dropped 1% right out of the gate . . . and after several attempts to bounce back, has not been able to so far.

Credit markets, as we’ve been hoping for, have benefitted, albeit slightly, thus far, and we expect that to continue throughout the week. The question is, how aggressive will investors be in giving us the lower note rates at reasonable prices? Today we’re about .125 better in rebate from Friday on our 30 year fixed product. It’s a minimal cost at 4.875%, but it’s quite a leap to get to 4.75% -- we’re at a .710 cost. And then . . . it will cost you almost 2 points to get 4.625! Interesting times….

Well, phones are ringing off the hook already, so as predicted, this is going to be a busy week, hopefully! I know we’re all “jonesin’” to get busier than we can stand it once again. If you need me, call me or email me here at the office! Have a terrific Monday and a very healthy, profitable and prosperous week!