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.
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If you are considering locking in an interest rate for a New York mortgage or a Florida mortgage, read this post.
The bond market was down 11/32, which caused this morning’s mortgage rates to rise by approximately .250 of a discount point. Part of that increase is a result of bonds losing ground yesterday as stocks rallied late in the day.
There were two pieces of economic data released this morning. The more important of the two was April's Durable Goods Orders report that revealed a 0.2% increase in new orders for big-ticket items. This nearly pegged forecasts of a 0.3% increase, but since this data is known to be quite volatile from month-to-month, we can consider it a match. Worth noting though is a somewhat favorable secondary reading that excludes transportation orders. If orders for airplanes and other transportation-related items, new orders fell 0.6% compared to forecasts of a 1.0% increase. This means that new orders for smaller, less expensive items were weaker than many had thought. That makes the news favorable for bonds and mortgage rates, however, it really wasn’t a huge variance so its impact on today’s mortgage pricing has been fairly minimal.
The Labor Department reported that 370,000 new claims for unemployment benefits were filed last week, down slightly from the previous week’s revised total of 372,000. Yes, we did see an upward revision to the previous week’s number of initial claims. Not exactly surprising news. When we digest the data, we see a decline of 2,000 claims when analysts were expecting to see a drop of 5,000 (370k to 365k). Therefore, we should consider the data slightly favorable to bonds and mortgage rates. Unfortunately, slightly favorable results from a weekly report isn’t enough to offset other factors that are leading to this morning’s weakness in bonds.
Yesterday’s 5-year Treasury Note auction didn’t cause a great deal of movement in bonds yesterday afternoon. The selling in bonds came as a result of stock buying, not results of the sale. If today’s 7-year Note sale goes very well AND stocks remain near current levels, we could see some improvement in bond prices and possibly mortgage rates later today. Results will be posted at 1:00 PM ET, so any reaction will come during afternoon hours.
The last relevant data of the week will come from the University of Michigan, who will update their Index of Consumer Sentiment for May late tomorrow morning. This type of data is watched closely because when consumers are feeling more confident about their own financial situations, they are more likely to make a large purchase in the near future. Since consumer spending makes up over two-thirds of the U.S. economy, rising confidence and the higher levels of spending that usually follow, are considered negative news for bonds and mortgage rates. Tomorrow’s report is expected to show a small decline from this month's preliminary reading of 77.8. A reading above 77.5 would be considered negative for bonds and mortgage pricing.
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 and Florida State Banking Departments and our loans are arranged through third party providers.
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