I would keep floating your loans today as well. I included some pretty informative articles at the bottom of this as well, but here's why I am floating my loans today:
The bond market started out extremely strong this morning (up 29/32) while the stock market is down (Dow by 225,a nd Nasdaq by 42). Due to the stocks slipping and very weak news for the economy, the bond market is seeing a huge benefit as investors are transfering their monies to a safe-haven. All that said, you probably aren't seeing a huge difference in mortgage pricing today because of yesterday's late bond market slope. However, keeping that in mind, we will see a nice improvement in rates this afternoon if the bonds maintain their morning momentum.
The first report released today was the Personal Income and Outlays for September. The publication revealed a .4% increase in income (which met expectations), and a .3% rise in spending (which was less than anticipated). This may come across like inflationary concerns, but this is actually positive news for the mortgage pricing.
The Manufacturing Index for October (released by the Institute for Supply Management) reported a decrease to 50.9 - much lower than estimations. This is good news for bonds even though it's bad news for the overall economy.
The Employment report is scheduled for release tomorrow. The most important readings/measurements ar unemployment and the collective number of new jobs that were added/lost during the previous month. What would be good for the mortgage pricing/rates would be a higher report of unemployment than the, now, 4.7%, and/or a lesser than anticipated addition of jobs with no bump up in the earnings.
The Factory Orders report is another important piece due for release tomorrow, and is very similar to last week's Durable Goods Orders. The primary difference is that the Factory Orders report consists of orders for both durable and non-durable goods - making it a more complete report. An increase (more than 1%) would not be good for bonds or mortgage rates, and vica versa. That being said, with the Employment report being released right before this, you probably won't see this publication effect the mortgage market.
So, as I said in the beginning, I would float my loans today and see what the afternoon brings with regard to pricing! I wish you all success!
- Credit Worries Cause a Drop in Stocks
- Consumer Spending slows for the month of September
- Foreclosures skyrocket compared to last year's numbers!
- Unemployment claims drop