Financial & News Update by Maurice Sousse, Irvine CA 92612

Rates are almost the same from last week, with a small increase to some of the zero point loan structures on the FNMA side. The 10 Year Treasury bond, which determines mortgage rates, has been on quite a bumpy road. The yield in the beginning of January was at 3.43% dropping mid-month to 3.28% and settling at 3.54% at end of business today.

Tomorrow we have a significant report in jobs market. If the numbers are stronger, you will see a quick jump in rates. If the numbers are disappointing, the bond market will soften and rates will hold. On CNBC today Bill Gross of PIMCO, the largest bond company in the US, stated that he sees rates staying steady through 2011. He is probably one of the smartest bond traders in the world, but, I must say he is in the minority. Have you ever been in a big crowd that started moving? If so, you know that once the crowd starts moving, everyone goes with it. If the sentiment on Wall Street does not agree with him, you will certainly see in increase in rates.

On the world view, Egypt has caused great concern to the market place as investors fear that the turmoil can cause a quick rise in oil prices which could lead bond prices to fall.

All of this means put your seat belt on and hold on for the bumpy ride!!

On a disappointing note, our Foreign National program has recently changed where their minimum loan amount is $300,000. The program has a minimum 50% equity required which means the value or sales price must be a minimum of $600,000. But, the good news is we can still loan to Canadians, just at a larger minimum loan amount.

Remember, Muhammed Ali said “Champions aren’t made in gyms. Champions are made from something they have deep inside them a desire, a dream, a vision. They have to have the skill and the will. But the will must be stronger than the skill.”

Have a blessed weekend.