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.
There is nothing of importance scheduled for this morning, but we do have the first of this week’s two Treasury auctions that may influence mortgage rates. The 10 year Treasury Note sale is taking place today, while 30 year Bonds will be sold tomorrow. I am not surprised to see bonds pressured this morning, partly because it is common to see some weakness ahead of these sales as participating firms sell current holdings to prepare for them. Although, this morning’s selling is more a result of stock buying, but it is safe to say that the auction is contributing to a small part of today’s early losses. However, that preauction related weakness is usually only temporary if the sales are met with a decent demand. If the demand from investors was strong, the bond market could rally during afternoon trading, leading to lower mortgage rates. If the sale was met with a poor demand, the afternoon weakness may cause upward revisions to mortgage pricing later today.
Also, we have the release of the Fed’s Beige Book report. This report is named simply after the color of its cover and details economic conditions throughout the U.S. by Federal Reserve region. Since the Fed relies heavily on the contents of this report during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any significant surprises. Unexpected signs of strong economic growth or rising inflation would be considered negative for bonds and mortgage rates. Slowing economic conditions with little sign of inflationary pressures would be considered favorable for tomorrow’s bonds and mortgage pricing.
Tomorrow begins the highly important economic data of the week when the Labor Department will post March's Producer Price Index (PPI) at 8:30 AM ET. It will give us an important measurement of inflationary pressures at the producer level of the economy. There are two portions of the report that analysts watch, the overall reading and the core data reading. The core data is more important to market participants because it excludes more volatile food and energy prices. If it shows rapidly rising prices, inflation fears may hurt bond prices and mortgage rates because inflation is the number one nemesis of longer term bonds. A slight increase, or better yet a decline in prices, would be good news for the bond market and mortgage rates. Current forecasts are calling for a 0.3% increase in the overall reading and a 0.2% rise in the core data.
February’s Goods and Services Trade Balance will also be released early tomorrow morning, along with weekly unemployment figures from the Labor Department. The Goods and Services Trade report will give us the size of the U.S. trade deficit, but is not considered to be of high importance to the markets or mortgage rates. This report usually has little impact on mortgage rates unless it shows a significant variance from forecasts and there is no other data to drive trading that day. It is expected to show a trade deficit of $53.0 billion, but since the PPI is also being release tomorrow morning, I doubt this data will have any impact on mortgage rates.
The Labor Department will post last week’s unemployment figures early tomorrow morning. They are expected to announce that 355,000 new claims for unemployment benefits were filed last week, down so slightly from the previous week’s 357,000 initial claims. We have seen upward revisions to the previous week’s total each of the last couple weeks. Repeated revisions of noticeable size take away from the report’s credibility and limits market reaction to them. Take that, along with the importance of the PPI that is being released simultaneously and I believe we have little to fear from this data, unless we see a significant surprise from it.
Lastly, we have the 30 year Bond auction tomorrow, but that is during afternoon hours. The 10 year Notes are more important to mortgage rates than the 30 year Bonds. However, tomorrow’s securities can also still be influential to broader trading and mortgage pricing, so we will be hoping for a strong interest from investors, particularly international buyers.
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 and Florida State Banking Departments and our loans are arranged through third party providers.