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.
There is no relevant economic data being released today, so as expected, the stock markets are driving bond trading. There is relevant data scheduled for every other day with three of the four remaining days having multiple reports scheduled and a total of seven set for the week. This means we are likely to see plenty of movement in the markets and mortgage rates the rest of the week.
Tomorrow has the first two reports scheduled with July's Retail Sales data one of them at 8:30 AM ET. This data is very important to the financial markets and mortgage rates because it helps us measure consumer spending. Since consumer spending makes up over two thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected increase would indicate that consumers are spending less than previously thought, pointing towards further slowing in the economic recovery. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage related bonds more attractive to investors. Current forecasts are calling for an increase of 0.3%.
The first of this week's two key inflation indexes will also be posted early tomorrow morning. July's Producer Price Index (PPI) will give us an indication of inflation at the producer level of the economy. There are two readings in the report- the overall index and the core data reading. The core data is more important because it excludes more volatile food and energy prices that can change significantly from month to month. Current forecasts call for a 0.2% rise in the overall reading and a 0.2% increase in the core data. A larger increase in the core data could push mortgage rates higher tomorrow morning. If it reveals weaker than expected readings, we may see mortgage rates improve as a result. That is assuming that the Retail Sales data doesn’t show a surprise increase or decline.
Overall, I am expecting tomorrow or Wednesday to be the most important day of the week. Tomorrow’s Retail Sales report and Wednesday’s CPI are the two single most influential reports. Since tomorrow has the Retail Sales and PPI reports and consumer level inflation is not expected to be an immediate threat, I am leaning towards it as the day that we will see the most movement in mortgage rates. However, Wednesday is also a key day. With so much going on this week, I strongly recommend maintaining contact with your mortgage professional if still floating an interest rate.
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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