If you are looking for a Mortgage Professional who will give you the type of 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.
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If you are considering locking in an interest rate for a New York mortgage or a Florida mortgage, read this post.
Wednesday’s bond market opened in positive territory, as optimism about today’s Treasury auction extends yesterday’s late gains. The stock markets are showing minor losses during early trading with the Dow currently down 4 points and the Nasdaq down 7 points. The bond market is currently up 9/32, which with yesterday’s afternoon strength should improve this morning’s mortgage rates by approximately .250 of a discount point over Tuesday’s morning pricing.
There is no relevant economic data being posted this morning. We do, however, have two afternoon events that have the potential to influence mortgage rates. The first is the results of today’s 10-year Treasury Note auction that will be posted at 1:00 PM ET. Yesterday’s 3-yeat Note sale went very well and led to afternoon strength in the broader bond market. Today’s sale is much more important to the mortgage market than yesterday’s was, so similar demand in today’s sale could lead to further improvements in mortgage rates later today. But a lackluster demand in the longer-term securities would likely erase this morning’s gains and cause mortgage pricing to be revised higher.
At 2:00 PM ET today, the Federal Reserve will release its Beige Book report. This report, which is named simply after the color of its cover, details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve to determine monetary policy during their FOMC meetings. If it shows surprisingly softer economic activity, the bond market may thrive and mortgage rates could drop shortly after. If it reveals signs of inflation growing or rapidly expanding economic activity in many regions, we could see bond prices fall and mortgage rates revise higher this afternoon.
Fed Chairman Bernanke’s speech yesterday afternoon didn’t really give us any major surprises. He confirmed that the employment sector and the U.S. economy have recently showed signs of slowing, but that they were a result of higher fuel prices and the Japan disaster. He said that he expects them both to improve later this year. This was nothing new if one was following current events and recent economic releases, but the stock markets did move lower during afternoon trading. The bond market rallied late yesterday, but this was more as a result of the strong 3-year Note auction than his words.
Tomorrow has two relatively minor economic reports scheduled along with the 30-year Bond auction. April's Goods and Services Trade Balance report and last week’s unemployment figures will be posted early tomorrow morning. The trade report gives us the size of the U.S. trade deficit and isn't likely to cause much movement in the markets or mortgage rates. Analysts are expecting to see a $48.7 billion trade deficit, but it will take a wide variance from this projection for the data to influence mortgage rates.
The Labor Department will give us last week’s unemployment figures. They are expected to announce that 423,000 new claims for unemployment benefits were filed last week, nearly the same number as the previous week. This data also needs a surprisingly stronger or weaker number to influence mortgage rates. The larger the number of new claims, the better the news for the bond market and mortgage rates because it signals weakness in the employment sector that makes a broader economic recovery more difficult.
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 Florida Banking Deptartments and our loans are arranged through third party providers.