Countrywide Posts Losses of 1.2 Billion 
Countrywide announced they would lose 1.2 billon dollars in the third quarter. The loss should come as no surprise, considering that they are the nations largest mortgage lender and have been in the news throughout the last few months detailing the amount of bads loans on their books.

They have drawn down all of their lines of credit, which totalled about $11 billion and then they received an infusion of cash from Bank of America in the amount of roughly 2 billion.

In light of all of this bad news, Countrywide did say they expect to show a profit in the fourth quarter, due to a reduction in labor costs, among other things. If they are able to go from such a huge loss back to profitability in a quarter, I think it bodes well for the mortgage industry and the housing market. I guess we'll see.

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Warren Buffet Speaks 
Warren Buffet, leader of Berkshire Hathaway, shared some of his thoughts this morning on CNBC. Buffet, who is one of the wealthiest men in the world, has pledged over 30 billion dollars to the Gates Foundation, which is a charity founded by Bill Gates and his wife.

Buffet is respected by many as the best investor in the world. He recently made a very large investment in China and believes that the United States needs to maintain a strong give and take with China when it comes to trade. He also said that North Korea would be the one country in which he did not have any interest.

To me, the most uplifting thing Buffet said was that he believes our children will live better lives than we have lived and that our grand-children will live better lives than our children.

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Another Good Friday 
Today was another steady day for mortgage rates. Rates remained unchanged from last Friday, and we did see the mortgage bond market maintain its' positive rate outlook throughout the week.

I hope everyone has a great weekend. We have 2 Halloween parties to attend as a family this weekend, so I will be spending a lot of time dressed as Tic-Toc, the alligator from Peter Pan.


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September New Home Sales 
At 10:00 this morning, the September New Home Sales figure was released. Believe it or not, New Home Sales jumped up 4.8%. Comparing this number versus yesterday's Existing Home Sales decline tells me that there are home buyers in the marketplace, but that they are opting to purchase new homes in most cases. My understanding is that many Home Builders are making drastic sales concessions or price reductions, which are driving buyers to choose a new construction home. Existing home sellers may not be in a financial position to compete with builders' give-aways.

On the mortgage side of the equation, this increase is very good news. Although it is only one month and August's number was revised downward, it tells me that the housing industry may be in better shape than we have been led to believe.

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September Existing Home Sales 
Earlier this morning the September Existing Home Sales figure was released, showing a whopping drop of 8.0%. The mortgage bond market rallied briefly on the news and has been able to hold on to it's gains. This is the lowest number for Existing Home Sales in 8 years.

I'm sure this is something that was not a surprise to anyone. Everything I read, see, or hear about housing is doom and gloom. Certainly housing is taking a beating, and part of the problem is due to borrowers being sold loans that were not in their best financial interest.

I am surprised that people aren't buying homes, especially since everyone needs a place to live and there are some very good values out there. In my opinionm, housing is one of the biggest drivers of our economy. The more homes that are sold, the more work there is throughout the economy. I guess what I'm trying to say is, "It's time to buy a home."

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