Here is some advice about locking in a New York or Florida interest rate for a mortgage.
Thursday's bond market has opened fairly flat, following the lead of the stock markets. The Dow is currently down 14 points while the Nasdaq is up 4 points. The bond market is currently up 2/32, which should improve this morning's mortgage rates by another .125 - .250 of a discount point over yesterday's morning pricing.
The Labor Department said early this morning that 445,000 new claims for unemployment benefits were filed last week. This was lower than expectations, but has not hurt bonds during early trading. Forecasts were calling for 455,000 new claims, meaning the data points towards a little stronger labor market than many had thought. That can be considered negative for bonds and mortgage rates. However, with tomorrow's monthly data having so much importance, the markets have shrugged off today's weekly report.
The big news of the week is tomorrow's Employment report for September. The Labor Department will be in the spotlight when the y post September's unemployment rate, number of jobs lost or added during the month and average hourly earnings. These are considered to be very important readings of the employment sector and often causes a great deal of volatility in the markets and mortgage pricing. There have been repeated concerns about the shaky labor market and its likelihood of strengthening. It is widely believed that an economic recovery can't happen until the labor market gains some momentum. Therefore, weaker than expected readings would be considered good news for bonds and mortgage rates.
If it does give us numbers that fall short of expectations, bond prices should move higher tomorrow. This would likely lead to noticeably lower mortgage rates Friday morning. However, if tomorrow's report reveals stronger than forecasted readings, the stock markets will likely rally while bonds suffer. That would be bad news for mortgage shoppers. Analysts are expecting to see the unemployment rate rise by 0.1% to 9.7%, with little change in payrolls from August's level and a 0.1% increase in earnings.
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.
If you are seeking a mortgage for a New York or Florida property check with Empire Home Mortgage Inc. We have over 15 years experience and can check your credit and make suggestions to improve your credit score. We answer our phones seven days a week. Put us to the test. Visit our website www.empirehomemortgageinc.com to get answers to most of your financing questions. We are a Registered Mortgage Broker with the NY and Fl State Banking Departments and our loans are arranged through third party providers.
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