Market Comment
Mortgage bond prices fell again last week pushing mortgage interest rates higher. The Fed ended the mortgage backed securities purchase program last Wednesday. There was no coincidence that rates spiked higher Thursday morning with the Fed no longer there to buffer negative movements and keep rates in check. Stock strength also pressured bonds as the Dow approached the 11,000 mark.

Escalating oil prices also caused rates to spike higher as inflation fears began to increase. Fortunately the PCE Price Index data came in as expected.

Rates rose about 3/4 of a discount point for the week.

The Treasury auctions will once again take center stage this week. If foreign demand is lackluster like the last few auctions, we could see that carry over to the mortgage bond market causing rates to spike. The Fed minutes and weekly jobless claims may also move the market this week.

Treasuries
The 10 and 30-year Treasury bond yields are often viewed as “benchmarks”, reflecting the overall state of interest rates in the US economy. Many people concerned about mortgage interest rates track these bonds as a barometer for mortgage interest rates. However, in reality the Treasury and mortgage markets trade independently.

The supply and demand characteristics of Treasury bonds and mortgage-backed securities (MBSs) differ. Treasury securities represent money needed to fund the operations of the US government. MBSs, on the other hand, represent borrowing by homeowners. Demand for mortgage credit is seasonal and is also affected by the state of the overall economy. In terms of demand, Treasury securities are regarded as “risk free” investments, and often benefit from a “flight to quality” in times of financial crisis. Treasury bill, note, and bond prices are dictated by yield requirements and inflationary concerns. Because homeowners can sell or refinance their homes, investors in 30-year mortgage-backed securities usually see principal repayment in significantly shorter periods of time.

In the absence of information directly related to the mortgage interest rate markets, Treasury information can be useful. However, mortgage interest rates can vary significantly. In fact, many times the Treasuries will trade wildly while MBSs only see minor price changes and vice versa.

UNIVERSAL SOLE TRAIL CHALLENGE UNVEILED
Runners Invited to “Rock Your Sole” on December 12 at Schiller Woods

CHICAGO, IL. - Chicago’s scenic Schiller Woods Forest Preserve will serve as the backdrop to the
2009 Universal Sole Trail Challenge, slated for 10:00 a.m. on Saturday, December 12. The 5.25-mile offroad course is a favorite on the Chicagoland running scene and promises challenging terrain with mud and water crossings, as well as fallen trees, loose gravel and other natural obstacles. The event is open to runners and walkers but will be capped at 500 entries.

“We are ecstatic to be able to offer the Trail Challenge to the running community in 2009,” said Joel Feinberg, owner of Universal Sole. “We really feel this ‘off the beaten path’ event reflects Universal Sole’s personality and provides a unique opportunity for runners and walkers to gather and play in the woods with their friends and families in the midst of the holidays. A trail run like this can be a serious test for any competitor as well as a treat for those looking to finish out their 2009 running calendar with a bang.”

The race will take place at the Schiller Woods Forest Preserve, Groves 3 & 4, near the intersection of Irving Park Rd. and Cumberland Ave. Competitors will be greeted at the finish by welcome amenities common to Universal Sole events, including hot oatmeal, Rock Your Sole Chili and Goose Island Beer.

All registrants will receive a premium embroidered beanie cap. Additionally, the top three male and female finishers will each earn a pair of Saucony shoes and Universal Sole merchandise, while the top three in every age group will walk away with a special edition Trail Challenge Trophy.

The race is supported by Universal Sole, PERL Mortgage, Saucony, Goose Island and Clif Bar among others. Participants are encouraged to bring a pair shoes and socks to change in to after the race.

Registration is available online now at www.signmeupsports.com for $30, or participants can save $5 by registering in-store at Universal Sole, 3052 N. Lincoln Ave., Chicago. Race-day registration at the event site is $40. For more information visit www.universalsole.com or call the store at (773) 868-0893.

On July 23rd, PERL supported PAWS Chicago (Pets Are Worth Saving) by donating bikes for the live auction at their Castaways Beach Party. This fundraiser helped to raise thousands of dollars to support the PAWS shelter and save as many dogs as possible. Here is a link to the news footage on the event where you can see highlights such as “doggie ice cream” and doggie beach outfits.

About PAWS
PAWS Chicago is the city’s largest No Kill humane organization, focused on alleviating Chicago’s tragic pet homelessness problem. Since PAWS Chicago’s founding, the number of homeless pets killed in the city has been reduced by more than half ―from 42,561 pets killed in 1997 to 19,288 in 2008. PAWS Chicago envisions a No Kill Chicago and that dream is within reach because of important lifesaving work that is being done every single day.

On July 16, PERL Mortgage helped to sponsor the Chicago Association of Realtors 102nd Golf Outing. We couldn’t have had better weather and had a great time seeing old friends and making new ones. For photos of many of the golf groups, please follow this link and become a fan of PERL Mortgage.

See you at the Inaugural Gala!

On July 16th, PERL Mortgage is sponsoring the Chicago Association of Realtors 102nd Annual Golf Classic.

The golf package includes golf cart, continental breakfast, lunch, complete round of golf, unlimited on-course beverages and awards reception with two-hour open bar and music. Event begins at 8am and will be held at George Dunne National Golf Course (16310 S. Central Avenue, Oak Forest, IL).

Event Schedule:
Registration/Continental Breakfast - 8:00 A.M.
Shotgun Start - 9:00 A.M.
Reception - 2:30 P.M. (depends on end of play)

Net proceeds from the sale of raffle tickets will benefit the Emergency Fund, which provides immediate financial assistance, without the red tape, to help Chicago area individuals and families through a crisis or a transition. The Emergency Fund is the largest provider of homeless prevention funding in Illinois, serving more than 7,000 families each year.

For more information, please visit the event website.