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.
Visit our website, www.empirehomemortgageinc.com . There you can get answers to all of your financing questions, view rates and search for foreclosed properties.
If you are considering locking in an interest rate for a New York mortgage or a Florida mortgage, read this post.
Tuesday’s bond market opened well in negative territory following stronger than expected economic news and a positive reaction in stocks. The stock markets are rallying around the data with the Dow up 133 points and the Nasdaq up 31 points. The bond market is currently down 25/32, which should push this morning’s mortgage rates higher by approximately .375 of a discount point.
This morning brought us the release of two extremely important economic reports. The first was May’s Retail Sales report from the Commerce Department. They announced that retail level sales fell last month 0.2%. The decline in sales was the first in almost a year, but it was a much smaller drop than expected. Analysts were expecting to see a 0.7% decline, meaning consumers were spending more than thought. Even if more volatile auto-related sales are excluded, sales exceeded forecasts. This is bad news for the bond market and mortgage rates because it hints that the economy was not as weak as many had predicted.
May's Producer Price Index (PPI) was the second. The Labor Department reported a 0.2% increase in the overall reading of the index and a 0.2% rise in the core reading. The overall reading was a bit higher than expected, but the more important of the two readings matched forecasts. This will make the report almost a non-factor in today’s mortgage pricing. The stronger than expected sales data is driving bond prices lower and mortgage rates higher this morning.
Fed Chairman Bernanke will be speaking at a conference in Washington this afternoon. The topic will be our debt ceiling issue and the current budget. There is potential for his words to affect the markets and influence mortgage rates later today. He is scheduled to speak at 2:30 PM ET, so any reaction will come during late afternoon hours.
There are also two reports scheduled for release tomorrow, with one them the week's most important and arguably the single most important report we see each month. That would be May's Consumer Price Index (CPI) at 8:30 AM ET. It is very similar to today's PPI, but measures inflationary pressures at the more important consumer level of the economy. It is expected to show a 0.1% increase in the overall reading and a 0.1% increase in the core data. A larger than expected increase in the core reading would most likely lead to a noticeable upward change to mortgage rates tomorrow since it would indicate inflation is strengthening. However, a weaker than expected core reading could lead to a bond rally and lower mortgage pricing.
Tomorrow’s second relevant report will come mid-morning when May's Industrial Production data is released. This report will be released at 9:15 AM ET and is considered to be moderately important. It measures output at U.S. factories, mines and utilities, giving us a fairly important measurement of manufacturing sector strength. If it reveals that production is rising, concerns of manufacturing strength may come into play in the bond market. A larger increase than the expected 0.2% would indicate that the manufacturing sector is stronger than thought and would likely push mortgage rates higher. That is assuming that the CPI doesn't surprise us.
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 Departments and our loans are arranged through third party providers.
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