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.
Today’s FOMC meeting adjourned with no change to key short term interest rates or monetary policy. Particularly, no plans for a QE3 that some bond traders had hoped for. In the post meeting statement, the Fed noted an improving employment market, but reiterated its previous statement of keeping key rates low until at least the latter part of 2014.
The somewhat more optimistic comments helped to fuel stock buying and bond selling. The stock markets extended their morning gains with Dow closing up 218 points and the Nasdaq up 56 points. Both indexes closed above their 13,000 and 3,000 respective thresholds. The result was bond selling as funds shifted into the stock rally, causing the bond market to close down 23/32. This will likely lead to an upward revision in mortgage rates of approximately .125 - .250 of a discount point form this morning’s pricing.
Also worth noting was news of mixed results in today’s 10 year Treasury Note sale. Some of the measurements used to gauge investor interest were fairly strong, but bids from international buyers lagged the level from recent sales. Those results were posted at 1:00 PM ET, so this afternoon’s selling comes from the FOMC results and the stock rally that followed.
Earlier today, the Commerce Department reported that retail level sales rose 1.1% last month, slightly exceeding forecasts of 1.0%. Even though this was just a small variance, it was above an already healthy jump in sales and an upward revision of 0.2% to January’s sales. In addition, a secondary reading that excludes more volatile auto sales showed an increase of 0.9% when analysts were expecting to see a 0.6% rise. This means that consumers spent more the past two months than many had thought. Since consumer spending gains translates into economic growth, this morning’s data was negative for bonds and mortgage pricing.
There is no relevant economic data scheduled for release tomorrow. Besides the 30 year Bond auction results during afternoon hours, look for the stock market to drive bond trading and mortgage rates. If the major stock indexes extend this afternoon’s gains, we could see more pressure in bonds tomorrow morning. On the other hand, we may see some selling as investors look to protect recent profits, especially after today’s late news that 4 of 19 of our biggest banks failed the Fed’s stress test that is used to gauge strength in another economic downturn. It will be interesting to see how this plays into tomorrow’s activities.
If I were considering financing/refinancing a home, I would.... Lock 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.
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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