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.
The Conference Board announced late this morning that their Consumer Confidence Index (CCI) for July rose to 59.5 when it was expected to move lower. Analysts were calling for a reading of 56.0, meaning surveyed consumers felt much better about their own financial situations than many had thought. This is negative news for the bond market because rising confidence usually translates into consumers making more purchases, fueling economic activity.
However, to the benefit of mortgage shoppers, it appears that the data is not of much concern to traders this morning. June's New Home Sales was also released late this morning, revealing a 1.0% decline in sales of newly constructed homes. Analysts were expecting a slight increase in sales, so this data should be considered favorable for the bond market and mortgage pricing. But since this data tracks only a small portion of all home sales in the U.S., its impact on mortgage rates is usually minimal.
Tomorrow brings us three events that have the potential to influence mortgage rates. The first will come from the Commerce Department when they post June's Durable Goods Orders at 8:30 AM ET. Current forecasts are currently calling for an increase in new orders of 0.5% from May to June. This data gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items, or products that are expected to last three or more years. A stronger than expected number may lead to higher mortgage rates tomorrow morning. If it reveals a decline in new orders, mortgage rates should drop because it would indicate manufacturing weakness. It should be noted though that this data is known to be extremely volatile from month to month, so a minor difference between forecasts and the actual reading may not move mortgage rates much.
The Federal Reserve will release its Beige Book report tomorrow afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. Since Fed Chairman Ben Bernanke's testimony to Congress two weeks ago gave us a recent update, I don't think we will see any significant surprises in this report. Therefore, we will likely see little movement in mortgage rates tomorrow afternoon as a result of this report.
Also tomorrow is the first of this week’s two Treasury auctions that may affect bond trading and mortgage rates. The Treasury will sell 5-year Notes tomorrow and 7-year Note Thursday. Results of each sale will be posted 1:00 PM ET each day. If investor interest is strong, we can expect the broader bond market to rally and mortgage rates to move lower. However, lackluster demand could lead to bond selling and higher mortgage rates tomorrow and Thursday afternoons. Unless progress is made on the debt ceiling prior to these sales, it is unlikely that they will go well.
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... Lock 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 New York State and Florida Banking Departments and our loans are arranged through third party providers.
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