Aloha Friday,

The credit market hasn't shown many signs of changing recently, but that actually may be a good thing. For three months after the height of the credit crunch in October, lending rates fell dramatically as the Federal Reserve unveiled countless unprecedented -- and expensive -- initiatives to ease credit, lower borrowing costs and boost lending that had essentially dried up. But for the past several months, lending rates have hardly moved an inch.

Similarly, Treasury yields fell substantially during the credit crisis to record lows, but have leveled off in 2009. Bond prices move in opposite direction to their yields.

Conditions in the credit market may not be improving, but a flat line is a welcome sign for bond investor after yields' precipitous declines from October through the end of 2008. For borrowers, steady rates may be an indication that the credit situation is stabilizing.

In regards to underwriting times, please note that I suggest you try to write the offers for 60 days or sooner as the volume levels are unprecedented due to the low interest rates. It will certainly help to set up proper expectations for the sellers. There are several occasions we have closed in under 30 days, but times seem to be increasing a touch in the last few weeks.

Please let me know if I can help you in any way this weekend.