If you want a Mortgage Professional who will give you the service that you deserve, contact Bob Amato (NMLS # 8632) and Empire Home Mortgage Inc. (NMLS # 44882). We answer our phones seven days a week until 9PM. Put us to the test. Our toll free number is (866) 742-5227. Visit our website, www.empirehomemortgageinc.com . There you can find answers to all of your financing questions, view rates and search for foreclosed properties in your area.
If you are considering locking in an interest rate for a New York Mortgage or a Florida Mortgage, read this post.
Today’s FOMC meeting has adjourned with no change to key short term interest rates. This was widely expected, but the post meeting statement from the Fed hinted that they are more optimistic about the economy than they were at the previous meeting. They did not say anything concrete, but suggested that the sectors of concern are showing signs of gradual improvement. They also said that rising food and energy costs (goes towards inflation concerns) appear to be temporary and that long term inflation readings remain calm.
The stock markets are still showing sizable losses, but are well off earlier lows with the Dow down 137 points and the Nasdaq down 33 points. On the other hand, the bond market has given back some of its earlier gains, currently up 11/32. I believe that we will see many lenders revise pricing higher this afternoon by approximately .125 - .250 of a discount point from this morning’s rates. If your lender does not revise pricing higher this afternoon, it will be reflected in tomorrow’s morning rates.
Overall, today’s FOMC meeting is fairly neutral news towards mortgage pricing, but it appears the markets were hoping for more. As stock prices move higher, bonds are losing the flight to safety benefit of this morning. As mentioned in this morning’s commentary, this bond rally looks to me to be only temporary. Therefore, please proceed cautiously if still floating an interest rate.
The Labor Department will post February's Producer Price Index (PPI) early tomorrow morning. This important index measures inflationary pressures at the producer level of the economy. There are two portions of the index the overall reading and the core data. The core data is more important and watched more closely because it excludes more volatile food and energy (including gasoline) prices. If the index shows a large increase, inflation concerns will rise, making long-term investments such as mortgage related bonds less attractive to investors. This would lead to higher mortgage rates tomorrow morning. Current forecasts are calling for a 0.6% increase in the overall reading and a 0.2% increase in the core data.
Also tomorrow, February's Housing Starts report will be posted but it will likely not have much of an impact on mortgage rates. It gives us a measurement of housing sector strength and future mortgage credit demand, but is usually considered to be of fairly low importance to the financial markets unless it shows a large variance between forecasts and actual number of new home starts. It is expected to show a decline in new starts from January to February, signaling weakness in the housing sector.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Empire Home Mortgage Inc. is a registered Mortgage Broker with the NYS and the Florida Banking Depts and our loans are arranged through third party providers.
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