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Rate Lock Advice and Mortgage Market Update

By Bill Ladewig

Mortgage and Lending with LoanOfficerSchool.com NMLS 291249

August 28, 2009 02:22 AM

Rate Lock Advice and Mortgage Market Advisory

August 28 , 2009, 7:00 AM PT

Rate Lock Advice: FLOAT
MBS prices are down -3/32. Personal Income and Core PCE came in very close to expectations and had little immediate impact..

RATE NOTES:
When MBS prices are up, Rates are down.
Lock advice changes throughout the day .
Good economic news = Bad Rate News.

National Average Fixed Rate Mortgage
Down 0.01% at 5.19% on Aug.27

Fannie Mae Mortgage Backed Securities
MBS Opened at 4.907% Up 0.071%.

10 Year Treasury currently 3.50% Up 0.03%

DJI stocks 9,555.69, Down -24.94, -0.26%

European and Asian Markets Up 1.027%

Nymex Crude Oil currently $72.48 Up $0.20

This morning, July Personal Income remained unchanged from June, which was very close to the consensus forecast. The July Core PCE price index, the Fed's favored inflation measure, matched expectations with an increase at a 1.4% annual rate, down from 1.5% last month.

Once again, the data showed that inflation is not a concern right now. Consumer Sentiment will be released at 10:00 et. Volume is likely to be very light today, which may lead to increased volatility.

WORRIED ABOUT AN OUT OF TOWN APPRAISER?
If you are concerned about the value of your listing and need a local appraiser consider FHA financing where we can still control the appraiser selection.