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.
Friday's economic reports showed results that were mixed for bonds and mortgage rates, but neither revealed any significant surprises. The revision to the 2nd Quarter Gross Domestic Product (GDP) came in a 1.0% when analysts were expecting to see a 1.1% rate of growth during the quarter. The difference is good news for bonds and interest rates, however, the overall downward revision is the better news. The 0.3% downward revision sounds and looks better than the 0.1% variance from forecasts.
August’s revision to the University of Michigan’s Index of Consumer Sentiment gave us similar results. It stood at 55.7 this month according to today’s update, nearly matching forecasts of a 55.8 reading. The preliminary reading that was released earlier this month showed 54.9, indicating that consumers were more optimistic about their own financial situations than previously thought. That can be considered negative news for the bond market because it means that consumers may be more willing to make large purchases in the near future. Since consumer spending makes up two-thirds of the U.S. economy, waning levels of confidence are considered to be favorable for long-term investments such as mortgage-related bonds.
Mr. Bernanke’s speech this morning caused a fair amount of volatility in the markets. He said that next month’s FOMC meeting has been changed to a two-day meeting so that they have additional time to consider what steps to take to help boost economic growth. He warned that the Fed’s hands are somewhat tied, calling on Washington to do their share, specifically to be careful when make deficit reduction decisions. He hinted about concern that some measures considered by Congress my hurt the economy in the short-term. Overall, he basically let us know that the Fed is considering further action but did not give any details as to what that may be.
Thursday's 7-year Note auction went fairly well. By most measurements it did better than Wednesday’s 5-year Note sale. Still, investor demand was not overwhelmingly strong, which raises the question if current bond yields may be limiting further investment. If that is the case, then we may have seen the bottom in mortgage rates, at least for the time being.
Next week is packed with relevant economic reports, including back-to-back heavyweights Thursday and Friday (ISM and Employment respectively). There is data scheduled for each day of the week, including Monday’s Personal Income and Outlays report. Look for details on next week’s activities 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... 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 New York State and Florida Banking Departments and our loans are arranged through third party providers.