"Given the magnitude of the Federal Reserve's involvement in the mortgage market and the shifting sentiment on the strength of the economy, the volatility we experienced during the quarter is not surprising," said Malon Wilkus, Chair and Chief Executive Officer. "However, despite the recent volatility, we believe our portfolio is appropriately positioned to create excellent risk adjusted returns for our shareholders over the long-term."
I have been a long 5 1/2 year investor and have seen this happen more times in the past than,you know what I'm trying to say "DON'T PANIC"
Of course it is, but that in no way means you shouldn't look for the right entry point. And for me, I am looking at anything below 29. If it doesn't hit, no problem, I feel much more comfortable in hybrid mREIT's in the current environment anyhow.
Investors have already forced owner occupant buyers to the sidelines in many markets, driving up the prices beyond their reach. You can thank the Fed again for this - first Greenspan and now Bernanke. But the numbers now aren't supporting further investment as rents in the areas seeing the largest increases are flat to falling, half the properties purchased by investors are unrented and the projected margins for the investors has collapsed. Och Ziff has already put the 300 homes they purchased in Northern California on the block after 18 months on average of ownership and most large hedge funds have stopped investing. Anyone who chased the market up to buy is already screwed. The drop in rates was from banks competing for a dwindling supply of loans, both in the refi and purchase markets. This party is coming to a screeching halt as investors like Och Ziff start bailing out. This bubble is likely what caused the mess up with AGNC but the bubble is already bursting.