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Archive for January 9th, 2008

Countrywide fundings up

Posted by Sada Mosler on 9th January 2008

Another sign of a possible October/November bottom:

Countrywide fundings inch higher

CALABASAS, Calif. (AP) – Countrywide Financial Corp., the nation’s largest mortgage lender, said Wednesday its December loan fundings rose 1 percent from November and were ahead of internal forecasts.

The stock, which lost nearly a third of its value on Tuesday amid rumors –which the company strongly denied — of bankruptcy, rose 13 percent in premarket trading.

Countrywide said it funded $24 billion in loans in December, giving it a total of $69 billion for the fourth quarter. Average daily mortgage applications in the month slipped from November, but Countrywide attributed that to a typical seasonal decline.

The company’s banking operations had assets of $113 billion at the end of December, up from $83 billion at the end of November.

Countrywide also said it saw a slower rate of people paying off loans early, which made its servicing business more valuable. Servicers collect payments and manage loans for their owners.

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2008-01-09 US Economic Releases

Posted by Sada Mosler on 9th January 2008

2008-01-09 MBA Mortgage Applications Purchasing Index

MBA Mortgage Applications (Jan 4)

Survey n/a
Actual 32.2%
Prior -11.6%
Revised n/a

As expected, purchase applications sprung back after the annual fall of in late Dec.

Markets were concerned this wouldn’t happen this year.

Refi index up indicates market functioning returning here as well.

30 year mtg rate down to 5.73% – way lower than August.


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2008-01-09 EU Highlights

Posted by Sada Mosler on 9th January 2008

Fed will take heat for conducting a weak $, beggar thy neighbor, inflate your way out of debt policy, as it will be seen US exports are robbing demand from eurozone, while price pressures rise, spreading stagflation around the world.

♦ Europe’s Economic Expansion Exceeds Earlier Estimate
♦ German Output, Exports, Retail Sales Unexpectedly Fall on Oil
♦ German Nov industrial output down 0.9 pct from Oct, cons up 0.4 pct
♦ Germany May Cut Forecast for 2008 GDP Growth, Steinbrueck Says
♦ European Trade Union Says Wage Growth Is No Threat to Inflation
♦ French November Trade Deficit Widens to EU4.8 Billion
♦ December inflation surprising, rates may grow further

[source: Bloomberg]


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