Update #2/ Week of August 31, 2009

Good Morning Everyone and Happy Tuesday! We talked yesterday about the sell off that started in Asia Monday morning which carried over to us, and then back around the globe . . . we continue to drop like a Pachinko game. Even though the Shanghai market was able to bounce back 1.1% after losing 7% the day before, European markets were down early today between 1 - 2%. Like it or not, we’re part of a global economy now and markets around the world do have an ever increasing affect on our markets. All three of the major equity indices are down nearly 2% right out of the gate. September, historically, is not a good month for stock markets, and our markets are poised for a pull back anyway after having risen 14% in 10 weeks.

As expected, this is having a beneficial influence on rates. Our 30 year fixed is slightly better today than yesterday, but take a look at the 4.75% note offering – just a little more the .500 cost now. Nice! There were three economic reports this morning. Interesting that two of the three were positive for the economy, but the bulls just can’t seem to stop the selling. The August ISM Manufacturing Index came in at 52.9, beating expectations and up from 48.9 in July. Construction spending was down .2% from the month previous, slightly worse than the flat line analysts were expecting. Pending home sales for July were up 3.2% -- besting experts’ anticipated number of a 1.5% rise.

Today’s sell off is long overdue, and we hope this continues for a few weeks. If you need me, call me or email me here at the office. I’ll be here all day, up until 3:30 when I need to be at the eye doctor. If you want to lock a loan, be sure to email me and let me know your lock is coming over the fax. Have a terrific Tuesday!