Prospect Mortgage Daily Rates – June 9th, 2009

Good morning!

MARKET UPDATE:  Yesterday we saw two price changes for the worse, due to the oversupply of treasuries on the bond market and the prevailing assumption that the worst of the recession is behind us.  Today at 1:00 pm EST we have a $35 billion auction of three year notes.  How much of yesterday’s decline was attributed to today’s auction remains to be seen, and we will see if the negative reaction to the additional market debt continues as it has in the recent weeks. According to Reuters, the Treasury has approved $68 billion in TARP repayments from 10 of the 19 largest U.S. banks. The announcement hasn’t created much of a surprise since it was already expected that up to 10 banks would be allowed to repay in excess of $50 billion in TARP funds. In turn, the KBW Banking Index has reversed its recent gains to trade with a 0.4% loss. Separately, wholesale inventories for April slipped 1.4%, which is a bit steeper than the 1.2% decline that was expected. The previous report was revised lower to reflect a 1.8% decline. Wholesale inventories have declined for eight consecutive months.

Quotes of the Day,

Successful people are not afraid to fail. They have the ability to accept their failures and continue on, knowing that failure is a natural consequence of trying. The law of failure is one of the most powerful of all the success laws because you only really fail when you quit trying.

Failure is only the opportunity to more intelligently begin anew.

       Henry Ford

Optimism is the one quality more associated with success and happiness than any other.

       Brian Tracy

Conventional Rates                                                                                Jumbo Loan to $1M – 70% LTV Max

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Prospect Mortgage – Largest Privately Held Mortgage Banker in the United States.