Rate Lock Advice & Mortgage Market Update

Mortgage and Lending with LoanOfficerSchool.com NMLS 291249

May 26, 8:13 PT
Lock Advice is Updated Several Times Daily 

Short Term Mortgage Rate lock Advice:  FLOAT
MBS prices are down 4/32.
MBS Prices move opposite of mortgage rates.

Long Term Mortgage Rate Lock or Float Advice:  FLOAT
News from Korea is pushing money into the bond market.

  • National Average Fixed Rate Mortgage
    Down 0.01% at 4.86% on May.25
  • MBS Yields Opened at 4.435% Up 0.023%.
  • 10 Year Treasury 3.230% Up 0.03%
  • DJI Stocks $10,131.42,  Up 87.67, 0.87%
  • European and Asian Markets Up 2.276%
  • Nymex Crude Oil Currently $71.33 Up $2.58


Wednesday, May 26
Durable Orders exceeded the consensus.  New Home sales will also be reported today.

Tuesday, May 25
Tensions between North and South Korea have caused money to fly to safety. from stocks to bonds which helps mortgage rates.
Consumer Confidence came in at 63.3, above the consensus forecast of 58.5 which helped  Stocks recover from down almost 300 earlier in the day.

Monday, May 24

Existing Home Sales were 5.77M, higher than the consensus of 5.65M.  The news did not effect mortgage rates.Friday, May 21
No economic reports are scheduled today so mortgage rates will be primarily driven by the stock market.  DJI has recovered from down 148.73 shortly after the opening bell.

Friday, May 21
No economic reports are scheduled today so mortgage rates will be primarily driven by the stock market.  DJI has recovered from down 148.73 shortly after the opening bell.

Thursday, May 20
Jobless claims higher than expected.   Stock market weakness is pushing Mortgage Rates down this morning.
Oil prices fell as low as $65 per barrel, reaching the lowest level since July 2009. 

Wednesday, May 19
CPI inflation was very close to expectations at low levels.

Tuesday, May 18
Mixed Producer Price Index (PPI) and slightly increased Housing Starts which initially had little effect on MBS.   Later, the stock market  turned negative, which lifted MBS markets and lowered rates.

Monday, May 17,
The Empire State index fell short of the consensus forecast

Friday, May 14
Retail Sales came in close to expectations

Thursday, May 13
Weekly Jobless Claims at 444K, close to the consensus forecast of 440K. 
Demand was close to average for the 30-yr auction.

Wednesday, May 12
The March Trade Deficit rose to $40.4 billion, which was a little higher than the consensus forecast.

Tuesday, May 11
Demand was stronger than average for the 3-yr auction,

Monday, May 10
The big news effecting stocks this morning is that the European Union will make available $1 trillion to support Greece and other European Union members which are experiencing economic troubles.

Friday, May 7
The economy added 290K jobs, above the consensus of 190K, while the Unemployment Rate rose to 9.9% from 9.7%.

Thursday, May 6
This morning, weekly Jobless Claims fell to 444K, close to the consensus forecast of 440K.

Wednesday, May 5 - Bad news for EU is good news for US Mortgage Rates.
Early this morning the ADP jobs estimate for April was expected at +30K, as reported +32K; March was revised by ADP from -23K to +19K. A good report on jobs but there was no reaction to it in markets that are completely consumed with the unraveling of events in Europe and concerns that the EU may be permanently altered as the crisis of debt defaults has not been contained. All focus now is on safety to US treasuries and fears of a stock market decline. US stock markets will suffer as the euro currency falls against the dollar, investors will be leery of buying US equities as the dollar strengthening takes away buying from European and foreign investors in general.

  • Bernanke confident on recovery  AP Associtated Press
  • VA Loans Show Good Intel Is Best Defense The Department of Veterans Affairs' loan guarantee program-which requires no downpayment-has performed much better than, say, the troubled Federal Housing Administration program.  National Mortgage News
  • Employers added most jobs in 3 years in March STLToday
  • B of A agrees to cut loan amounts for underwater borrowers. National Mortgage News
  • Maybe there is help for Jumbo Loans. Broker Universe
  • Mortgage Brokers are the cheapest conduit to bring loans to market according to FHA Commissioner, David Stevens TBWS
  • OneWest Bank's sweetheart deal with our Bank Owned Government (BOG) Must See Video

California Rates 05-25-10, 8:00 PT
30 Year Fixed to $417,000
Rate 4.500%  Point 0.875, APR 4.634%
APR Based on $350,000 Loan at 80% LTV
740 Credit Score - 30 Day Lock.
Click for Quotes on FHA and VA loans With Detailed Cost Estimates.
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