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Mortgage Rate Lock advisory for New York or Florida Mortgages for Thursday, August 4, 2011

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Mortgage and Lending with Bob Amato of Empire Home Mortgage Inc

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 Labor Department said early this morning that 400,000 new claims for unemployment benefits were filed last week. This was very close to the previous week’s revised total of 401,000 new claims, making this data neutral-to-slightly unfavorable for bonds and mortgage rates.

 Analysts were expecting to see an increase in new claims, but the upward revision to the previous week means that claims have not fallen below the benchmark 400,000 level. With July’s monthly report being posted tomorrow morning, I don’t believe this morning’s news is having much of an impact on mortgage rates.

  Economic concerns from both here and abroad are still making stocks unappealing to investors. As stocks rallied yesterday, bonds lost momentum. That supports the theory that the recent run in bonds is fueled more from temporary safe haven investing than it is long term investments that will stay in the bond market if stocks stabilize. We should take that as an underscore to carefully watch the markets if still floating an interest rate. We have seen sizable improvements to mortgage rates over the past two weeks, but one must wonder just how much lower they can go in such short time. Tomorrow brings us the most important piece of data this week and arguably each month.

 The Labor Department will be in the spotlight as they release July’s monthly Employment report. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. While the preliminary reading to the GDP is arguably the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Tomorrow's report is expected to show that the unemployment rate remained at 9.2% last month while approximately 84,000 jobs were added to the economy. Due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing tomorrow morning if they vary from forecasts.

 Signs of strength in the employment sector will most likely lead to bond selling and stock strength that will push mortgage rates higher. Weaker than expected readings could add fuel to this bond rally and lead to improvements to mortgage pricing.

 If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float 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 New York and Florida State Banking Departments and our loans are arranged through third party providers.

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