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Calabasas Daily Rate Advisory - Home Loans

By
Mortgage and Lending with Core Financial Soultions, Inc

Core Financial Solutions



Friday's bond market has opened in positive territory despite the release of stronger than expected economic news. The stock markets are currently showing sizable losses with the Dow down 95 points and the Nasdaq down 9 points. The bond market is benefiting from the stock weakness again, currently up 10/32. This should improve this morning's mortgage rates by approximately .250 of a discount point.

The Labor Department gave us today's key data with the release of October's Employment report. It showed that 166,000 new jobs were added, which exceeded forecasts of 80,000 by a wide margin. However, offsetting that news was a downward revision of 14,000 to September's jobs and smaller than expected increases in average hourly earnings for October and September. The unemployment rate remained at 4.7%, as it was expected to do.

September's Factory Orders data was also posted this morning, revealing a 0.2% rise in new orders for both durable and non-durable goods last month. The latest forecasts were calling for a slight decline in orders. However, this data is no important enough to trump the Employment report results and stock fears in the market. Therefore, it has had little impact on this morning's mortgage pricing.

After the very busy week that this was, next week is going to seem very light. There are only a couple of relevant economic reports scheduled for release and they don't start until Wednesday. This will likely mean that the stock markets will again be in the forefront and a major influence on bond trading and mortgage rates.

Look for more details on next week's events in Sunday's weekly preview. I am holding the float recommendations through today to capture the expected pricing revisions we may see later today. But, I do expect to shift to a lock recommendation, for at least the immediate term period, early next week. If closing next week, it may be a good idea to lock a rate after this afternoon's pricing is posted.


If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float 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.

Please let me know if I can provide loan information for any of your clients. I would be happy to quickly pre-qualify them, provide loan scenarios, or help improve their credit position to obtain a lower interest rate.

I am here to provide you and your clients with exceptional service in a courteous and respectful manner.

Paul Lefton Feature Properties Feature Properties Free Property Records

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