First of all, Happy Halloween, and I hope you all are getting treats (deals and closings) rather than tricks!! I have to say that I feel a lot more confident from yesterday floating my loans. Here's why:
The bonds opened in a negative territory (6/32 down) this morning due to the stronger than expected GDP report. Right now, the Dow is up by 52 points while the Nasdaq is up 12. The stock markets are showing early gains with the Dow up 50 points and the Nasdaq up 12 points. Today's rates are going to be a little higher (about 1/8 of a discount point) due to this, but that is why you all locked your loans yesterday that are closing in the next week or so, right??!
As mentioned above, the GDP report for the 3rd Quarter was only expected to increase by 3.1%. However, it rose 3.9%, which shows that activity within the U.S. economy is doing very well for itself. With regard to the inflation, reports and statements have come out saying that it is under control. As a result, this should've had a positive effect on the mortgage pricing and bonds. Hoewver, we are seeing a bit stagnant market because of the FOMC meeting that is adjourned at 2:00 this afternoon.
Yesterday, I briefly went into the ECI (Employment Cost Index) for the 3rd Quarter. This report revealed a less-than-anticipated .8% increase. With regard to the effect this has on the mortgage pricing, we should (and would've seen if the FOMC weren't meeting) a positive influence.
If things significantly alter throughout the day, and/or when the FOMC is adjourned, I will update this report, so stayed tuned!
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