Aloha Friday

Rates were virtually unchanged this week since last Friday. There were comments this morning by Chinese Premiere Wen who expressed concerns over the massive amount of debt that the U.S. is creating by increasing the bailout packages.

Treasury’s churned Friday as stocks lost ground after rallying hard for three days. But bond investors also reacted to a speech by Chinese Premier Wen Jiabao in which he expressed concern that the mammoth amounts of Treasury debt his country holds will deteriorate in value. "We have lent a massive amount of capital to the United States, and of course we are concerned about the security of our assets," said Wen at his annual news conference on Friday. "To speak truthfully, I do indeed have some worries."

Wow. Basic economics. If you spend it, you must increase the income to pay for it in other ways. Taxes??? Ugh. Another conversation.

Several of our investors have now implemented the High Balance conforming rates again and we are in full swing on their submissions and rates. I have attached an excel spread sheet that you might want to keep on your desk top as it outlines the High Balance limits by county throughout the U.S.