| D-Day For Interest Rates
The betting is even money for a 0.25 per cent lift to 6.50 per cent, and there are even some commentators wondering if there will be another rate rise after this one (which might not happen anyway).Commentators are split on whether a rise will happen this week or in May, but there's been a change in consensus over the past three weeks.Interest rates are unlikely to rise when the Reserve Bank of Australia (RBA) meets next week, according to a majority of economists surveyed by AAP.The newsagency surveyed 19 economists and just seven expect an increase on Wednesday, 10 of the economists say the RBA could raise the overnight cash rate from 6.25 per cent some time in 2007, while two are forecasting a cut.The most common factors mentioned were a shortage of skilled labor, resilient consumer confidence and fears of a renewed outbreak of inflation.A couple mentioned the stronger dollar as perhaps helping the RBA not to move saying it would help limit the growth in import prices (oil products in particular).Investment bank, Goldman Sachs JB Was were being cautious and telling clients late last week that a rise probably won't happen this week.And AMP's Dr Shane Oliver believes that while the recent run of solid economic data has raised the risk of another interest rate hike, "on balance we think the RBA will leave interest rates on hold preferring to wait for more confirmation that growth in domestic demand is back on to a firm footing and that the US economy is not sliding into recession on the back of its mortgage crisis.He said that waiting till the May meeting will also allow the Bank to look at the March quarter inflation data.But since the speech on March 16 by Malcolm Edey, the bank's Deputy Governor in charge of economics, the push has gathered force amongst commentators, analysts and others in favour of rate rise.The speech didn't say anything significant or new, just reminded the market that inflationary pressures were still evident and still evident at a worrying level and that the bank would be keeping a close eye.It was a statement of the obvious but it was made with the intention of reining in expectations of an easier monetary policy this year and reminding the market not to get too far ahead ofreality.His speech came as more information emerged confirming that the modest recovery in economic growth in the final quarter of 2006, was continuing in the early months of 2007 with solid retail sales, a glimmer of an upturn in building approvals and housing finance, solid growth in car sales and good profits reported in the interim reporting period.Overseas the European lifted rates, as did the Chinese but the US seemingly changed focus from a single-minded concentration on inflation, to one that also mentioned other factors in the economy, such as the slumping housing sector and subprime mortgage problems.Last week's comments by Fed chairman, Ben Bernanke were also seen as both a continuation of the Fed's new stance, and also 'hawkish' on inflation.In fact it was more 'jawboning': no one seriously believes the Fed will lift interest rates when the US housing slump is deepening and we have yet to seen the full impact on new and existing home sales of the subprime problems.Around the world there seems to be a slow tightening of the easy money conditions since the Shanghai whispers in late February and then the eruption of the US subprime problems.
Write Way Solutions Launches Direct-Mail Writing Service for ...
As part of the launch, Trush is offering two free reports, "9 Hidden Secrets to a Powerful Mortgage Marketing Letter" and "8 Sure-Fire Tips for Enticing Readers in Your Mortgage Marketing Letters," for lenders wanting to improve the response rates on their mortgage marketing letters. "Unfortunately, many mortgage marketing letters are focused more on trickery than providing prospects with useful information that can result in more responses," Trush explained. "My objectives are focused on writing results-oriented copy that stresses a lender's capabilities using honest offers that are targeted toward a specific consumer." The free reports are available by visiting www.mortgagemarketingletter.com. About Write Way Solutions Phoenix-based Write Way Solutions is dedicated to producing high-quality copy for companies of all sizes.
Fitch Rates $527.7MM Wells Fargo Home Equity ABS 2007-1 Trust
The 'AAA' rating on the senior certificates reflects the 20.10% total credit enhancement provided by the 4.30% class M-1, 2.90% class M-2, 1.80% class M-3, 1.60% class M-4, 1.60% class M-5, 1.45% class M-6, 1.40% class B-1, 1.25% class B-2, 0.85% class B-3 and 2.95% initial overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. In addition, the ratings reflect the quality of the loans and the integrity of the transaction's legal structure as well as the capabilities of Wells Fargo Bank, N.A. (rated 'RPS1' by Fitch) as servicer. HSBC Bank USA, National Association is the trustee. The certificates are supported by 3,528 subprime, fixed- and adjustable interest rate, monthly pay, one- to four-family, residential first and second lien mortgage loans as collateral.
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