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 Commerce Department reported early this morning that retail level sales fell 0.2% last month, matching forecasts. However, a secondary reading that tracks sales excluding auto transactions showed a 0.4% decline when it was expected to be unchanged. Also, a downward revision of 0.3% to April’s sales help makes the data slightly favorable for the bond market and mortgage rates. This means that consumers spent less than they did in April, indicating economic weakness and helping boost bond prices this morning.
The Labor Department gave us May's Producer Price Index (PPI) this morning also, revealing a 1.0% decline in the overall reading and a 0.2% increase in the core data. The overall reading was weaker than the 0.7% decline that was expected, but since the more important core data pegged forecasts the report has not had much influence on today’s bond trading or mortgage rates.
The first of two Treasury auctions scheduled this week that may influence mortgage rates is being held today. 10-year Treasury Notes will be sold today while 30-year Bonds will be auctioned tomorrow. Results of both auctions will be posted at 1:00 PM ET each day. If investor demand was high, we may see bonds rally during afternoon trading, however, weak demand could lead to selling and an increase to mortgage rates. It is common to see some pressure in bonds right before these sales as investors prepare for them, but as long as the sales are not weak those pre-auction losses are usually recovered once they are completed.
In addition to the weekly unemployment update from the Labor Department, tomorrow morning brings us the extremely important Consumer Price Index (CPI) for May. It is very similar to today's PPI, but measures inflationary pressures at the more important consumer level of the economy. It is expected to show a 0.2% decline in the overall reading and a 0.1% increase in the core data. A larger than expected increase in the core reading would most likely lead to a noticeable upward change to mortgage rates tomorrow, while a weaker core reading could lead to a bond rally and lower 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... 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.
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