Mortgage Rate Lock advisory for New York or Florida Mortgages for Friday, August 12, 2011

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.

 Thursday’s stock rally allowed the Dow to recover 423 points and the Nasdaq 111 points of their recent losses. That, along with a weak 30-year Bond auction, led to further bond market selling during afternoon trading. Many lenders revised pricing higher late yesterday, but the size of the increase varied greatly between lenders. It will be interesting to see how the day goes as we wrap up one of the most memorable and volatile weeks that many can recall. The bond market showed some strength, bucking the traditional "higher stock prices equal bond selling" trend. 

 The Commerce Department reported early Friday morning that retail level sales rose 0.5% last month, meaning consumers spent more in July than they did on June. By theory, that is negative news for the bond market and mortgage rates, but since it matched forecasts it has not has not had much of an impact on this morning’s trading. If more volatile auto related transactions are excluded, we saw a larger than expected increase in sales. However, it appears to have had no bearing on today’s rates.

 Today’s second report came from the University of Michigan, who said their Index of Consumer Sentiment for August fell to 54.9. This was well below forecasts of 62.5, indicating a significant decline in consumer confidence about their personal financial situation. That is certainly good news for the bond market and mortgage rates because it means that consumers are less apt to make large purchases in the near future, limiting economic growth.

 Next week brings us the release of several relevant economic reports, including two key inflation indexes. None of the data is scheduled for release Monday, so we can expect to see the bond market react to stock strength or weakness and any news that comes over the weekend. The most important data is scheduled for the middle part of the week, but look for more details on next week’s events in Sunday’s weekly preview.

 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... 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 State and Florida Banking Departments and our loans are arranged through third party providers.