The only data today was July existing home sales, expected to be down 0.8% to 5.70 mil units, was only down -0.2% to 5.75 mil units. The median sales price was off only 0.6% to $228,900; inventories were up 5.1% to a whopping 9.6 month supply based on the present sales pace. Not much initial reaction to the release. Sales were actually a little better than forecasts, but it is mid summer.  We expect the inventory levels of unsold homes to increase as foreclosures increase.

 Very slowly,the market for new (TBA) mortgages is seeing buying.  The mortgage market was stopped in its tracks for the past few weeks but investors are returning to the MBS market for the 30 and 15 yr conforming fixed rate mortgages being originated (comments from our meeting this morning). Mortgages have been out-performing treasuries in the last couple of days as markets begin to return to stability.

 Although some stability has returned to the capital markets there is still a lot of problems to get through. In the next 90 days there is at least $500B of commercial paper that must be rolled or redeemed. Unless the paper is re-priced to reflect its junk status and the holders and borrowers take the hits prior to redemption, we could experience another round of panic and business failures.

Thank you and please call with any questions or to let me know how I can help!!

Brad Dinkel

Allen Tate Mortgage Services

704-634-2918 Direct

980-233-3909    Fax

 "Focusing on Strategic Mortgage Planning and Wealth Advancement"

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