The
FED announcement today was very interesting, even more so were the reactions
in stocks and bonds. Moments before the announcement broke,
the DOW was down 94 points, the 10-yeat Treasury was down 8 bps at 1.98%,
and oil was $43.46/brl. Within moments of the breaking headline that the FED
had removed the word "patients" from their intent to raise rates, the
DOW was up 116 and the 10-year moved up to 2.04%. Janet Yellen
then spoke and explained the FED's action and position, calming market
concerns of a June rate increase. The DOW closed up 227 and the 10-year at
1.95%, down 11 bps for the day. The following is the text of the FED
announcement:
I listened to Janet Yellen's press conference, during
which she indicated that "patients" did not mean that the
FED was going to raise rates in June. She indicated that the
Fed is seeing "more slack in GDP than they have previously
seen", it will be "appropriate" to raise the Fed Funds
Rate target when the committee has seen improvement in labor market (they
are targeting 4.9% - 5.1% unemployment in 2016 v. 5.5% presently), and
when it is confident inflation will move toward the committee's 2% target (.2%
in January and has been inside the FED target for 33 straight months).
I find it interesting that Yellen did not refer to the real unemployment rate (U6), which she has indicated concern about up to this point, although she did indicated that there are multiple indicators they look at in the unemployment numbers. That has to remain a concern as U6 presently stand at 11%. I believe that although she did not refer to U6 directly, that this will continue to be a main driver which will likely see the FED hold off on raising the FFR until late 2015. We'll see.
I find it interesting that Yellen did not refer to the real unemployment rate (U6), which she has indicated concern about up to this point, although she did indicated that there are multiple indicators they look at in the unemployment numbers. That has to remain a concern as U6 presently stand at 11%. I believe that although she did not refer to U6 directly, that this will continue to be a main driver which will likely see the FED hold off on raising the FFR until late 2015. We'll see.
http://www.portalseven.com/employment/unemployment_rate_u6.jsp
The following is an excellent summation of the FED actions and Yellen's comments: http://finance.yahoo.com/news/video-fed-bid-decouple-global-000240734.html;_ylt=AwrSyCUM2QpV5nAAJq.TmYlQ
The following is an excellent summation of the FED actions and Yellen's comments: http://finance.yahoo.com/news/video-fed-bid-decouple-global-000240734.html;_ylt=AwrSyCUM2QpV5nAAJq.TmYlQ
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FORWARD COMMITMENTS
Within the past month, we have locked rate on several forward commitments, including two as low as 3.75% fixed for 10 years and amortized over 30. If you have a refinance coming up within the next 12 months I would be glad to talk to you about our life company "forward programs".
INTEREST ONLY
We are also seeing some of our life companies provide 1 to even up to 10 years interest only payments on 10-year fixed rate loans, which is completely dependent upon leverage.
Within the past month, we have locked rate on several forward commitments, including two as low as 3.75% fixed for 10 years and amortized over 30. If you have a refinance coming up within the next 12 months I would be glad to talk to you about our life company "forward programs".
INTEREST ONLY
We are also seeing some of our life companies provide 1 to even up to 10 years interest only payments on 10-year fixed rate loans, which is completely dependent upon leverage.
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WESTCAP offers the ability to obtain loan sizes ranging from
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WESTCAP provides fixed and floating rate debt programs for a
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these correspondent relationships date back over 25 years, including Sun Life
of Canada for which we have been the exclusive correspondent in Southern
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I am always available to discuss potential
financing and or equity requirements, or to provide a written quote to
help convince a seller that you, or your client, are the most qualified buyer.
I will also handle any size transaction, as we are interested
in establishing long-term relationships as early as possible.
______________________________________________________________________
Steve Bridges
Executive Vice President
WESTCAP CORP
9960 Irvine Center Drive
Irvine, CA 92618
Office: (949) 387-9061 Cell: (949) 235-1540
sbridges@westcapcorp.com
www.westcapcorp.com
Executive Vice President
WESTCAP CORP
9960 Irvine Center Drive
Irvine, CA 92618
Office: (949) 387-9061 Cell: (949) 235-1540
sbridges@westcapcorp.com
www.westcapcorp.com
CA RE Broker: 00465840
