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Friday, January 8, 2010
Mortgage Rate Update 01-08-2010
Thursday, January 7, 2010
Mortgage Rate Update 01-07-2010
Thursday's bond market has opened flat as investors wait for tomorrow's major economic news. The stock markets are not showing much direction either with the Dow up 1 point and the Nasdaq down 8 points. The bond market is currently up 1/32, but we should still see an increase of approximately .250 of a discount point in this morning's mortgage rates due to weakness yesterday.
The Labor Department said this morning that 434,000 new claims for unemployment benefits were filed last week. This was a little lower than forecasts, but not enough to affect the markets or mortgage pricing.
Yesterday's FOMC minutes did give us some interesting insight to the Fed's current thought process and concerns. It appears that there is some concern whether more efforts will be need to keep the economy from stalling again. There was particular concern about the housing market and if more action will be needed to keep lending rates low. That could bode well for mor tgage shoppers since the last time the Fed announced they were buying bonds targeted at the housing market, mortgage rates dropped significantly. Another round of buying by the Fed could have similar results. I believe we will hear more about this option in the coming weeks and months.
Tomorrow's only relevant data is the big news of the week. The Labor Department will post December's employment figures early tomorrow morning. The Employment report is considered to be one of the most important monthly releases we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Its results are expected to heavily influence the markets and mortgage rates.
The latest forecasts are calling for no change in the national unemployment rate, keeping it at 10.0%. Analysts are now expecting to see a decline of 35,000 payrolls from November's level with earn ings rising 0.2%. If we see weaker than expected results, mortgage rates should improve tomorrow morning. However, stronger than expected readings will likely fuel a stock market rally and push mortgage rates higher.
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.
©Mortgage Commentary 2010
The Labor Department said this morning that 434,000 new claims for unemployment benefits were filed last week. This was a little lower than forecasts, but not enough to affect the markets or mortgage pricing.
Yesterday's FOMC minutes did give us some interesting insight to the Fed's current thought process and concerns. It appears that there is some concern whether more efforts will be need to keep the economy from stalling again. There was particular concern about the housing market and if more action will be needed to keep lending rates low. That could bode well for mor tgage shoppers since the last time the Fed announced they were buying bonds targeted at the housing market, mortgage rates dropped significantly. Another round of buying by the Fed could have similar results. I believe we will hear more about this option in the coming weeks and months.
Tomorrow's only relevant data is the big news of the week. The Labor Department will post December's employment figures early tomorrow morning. The Employment report is considered to be one of the most important monthly releases we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Its results are expected to heavily influence the markets and mortgage rates.
The latest forecasts are calling for no change in the national unemployment rate, keeping it at 10.0%. Analysts are now expecting to see a decline of 35,000 payrolls from November's level with earn ings rising 0.2%. If we see weaker than expected results, mortgage rates should improve tomorrow morning. However, stronger than expected readings will likely fuel a stock market rally and push mortgage rates higher.
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.
Wednesday, January 6, 2010
Mortgage Rate Updates 01-06-2010
Wednesday's bond market has opened in negative territory despite a flat open in stocks. The stock markets are not showing much direction with the Dow up 3 points and the Nasdaq down 2 points. The bond market is currently down 14/32, but we should see little change in this morning's mortgage rates due to strength late yesterday.
There is no relevant economic data being posted this morning. This afternoon brings us the release of the minutes from the last FOMC meeting. This will give market participants insight to the Fed's thinking and concerns regarding inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets or be a non-factor, depending on what the minutes show. They will be released at 2:00 PM ET, so they shouldn't affect the markets or mortgage rates until afternoon hours.
The only semi-relevant data scheduled for release tomorrow are weekly unemployment figures from the Labor Department. They are expected to say that 445,000 new claims for unemployment benefits were filed last week. This would be an increase from the previous week and would be considered fairly good news for bonds. However, since this data tracks only a week's worth of new claims, its impact on mortgage rates is usually minimal unless it varies greatly from analysts' forecasts.
Friday's data is the big news of the week. The Labor Department will post December's employment figures early Friday morning. The Employment report is considered to be one of the most important monthly releases we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Its results are expected to heavily influence the markets and mortgage rates.
Current forecasts are calling for a 0.1% increase in the unemployment rate, pushing it to 10.1%. Analysts are expecting to see little change in payrolls from November's level with earnings rising 0.2%. If we see weaker than expected results, mortgage rates should improve Friday. However, stronger than expected readings will likely fuel a stock market rally and push mortgage rates higher.
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.
©Mortgage Commentary 2010
There is no relevant economic data being posted this morning. This afternoon brings us the release of the minutes from the last FOMC meeting. This will give market participants insight to the Fed's thinking and concerns regarding inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets or be a non-factor, depending on what the minutes show. They will be released at 2:00 PM ET, so they shouldn't affect the markets or mortgage rates until afternoon hours.
The only semi-relevant data scheduled for release tomorrow are weekly unemployment figures from the Labor Department. They are expected to say that 445,000 new claims for unemployment benefits were filed last week. This would be an increase from the previous week and would be considered fairly good news for bonds. However, since this data tracks only a week's worth of new claims, its impact on mortgage rates is usually minimal unless it varies greatly from analysts' forecasts.
Friday's data is the big news of the week. The Labor Department will post December's employment figures early Friday morning. The Employment report is considered to be one of the most important monthly releases we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Its results are expected to heavily influence the markets and mortgage rates.
Current forecasts are calling for a 0.1% increase in the unemployment rate, pushing it to 10.1%. Analysts are expecting to see little change in payrolls from November's level with earnings rising 0.2%. If we see weaker than expected results, mortgage rates should improve Friday. However, stronger than expected readings will likely fuel a stock market rally and push mortgage rates higher.
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.
Tuesday, January 5, 2010
Mortgage Rate Updates 01-05-2010
Tuesday's bond market has opened in positive territory again following early stock losses. The stock markets are showing minor losses with the Dow down 37 points and the Nasdaq down 3 points. The bond market is currently up 13/32, which should again improve this morning's mortgage rates by approximately .375 of a discount point.
The positive mood in the bond market continues today despite stronger than expected results from November's Factory Orders report. The Commerce Department announced an increase of 1.1% in new orders for both durable and non-durable goods. This was twice the increase that expected and can be considered negative news for bonds and mortgage rates because it points towards a strengthening manufacturing sector. However, this data is not considered to be one of the more important reports we see each month, so its impact on today's trading and mortgage pricing has been minimal.
Tomorrow's only relevant event is the release of t he minutes from the last FOMC meeting. This will give market participants insight to the Fed's thinking and concerns regarding inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets or be a non-factor, depending on what the minutes show. They will be released at 2:00 PM ET, so they shouldn't affect the markets or mortgage rates until afternoon hours.
We will likely see this afternoon's tone in bonds extend into tomorrow morning's trading unless the major stock indexes are showing sizable losses or gains. The release if the FOMC minutes is not one the reports that market participants hold positions until its release or make protective moves ahead of it. With no important economic data on the schedule for tomorrow morning, this afternoon's trading and the opening stock markets will likely drive bond trading and mortgage rates tomorrow until we get to the 2:00 PM release.
The final report of the week comes Friday morning when the Labor Department will post December's employment figures. The Employment report is considered to be one of the most important monthly releases we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Its results are expected to heavily influence the markets and mortgage rates.
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.
©Mortgage Commentary 2010
The positive mood in the bond market continues today despite stronger than expected results from November's Factory Orders report. The Commerce Department announced an increase of 1.1% in new orders for both durable and non-durable goods. This was twice the increase that expected and can be considered negative news for bonds and mortgage rates because it points towards a strengthening manufacturing sector. However, this data is not considered to be one of the more important reports we see each month, so its impact on today's trading and mortgage pricing has been minimal.
Tomorrow's only relevant event is the release of t he minutes from the last FOMC meeting. This will give market participants insight to the Fed's thinking and concerns regarding inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets or be a non-factor, depending on what the minutes show. They will be released at 2:00 PM ET, so they shouldn't affect the markets or mortgage rates until afternoon hours.
We will likely see this afternoon's tone in bonds extend into tomorrow morning's trading unless the major stock indexes are showing sizable losses or gains. The release if the FOMC minutes is not one the reports that market participants hold positions until its release or make protective moves ahead of it. With no important economic data on the schedule for tomorrow morning, this afternoon's trading and the opening stock markets will likely drive bond trading and mortgage rates tomorrow until we get to the 2:00 PM release.
The final report of the week comes Friday morning when the Labor Department will post December's employment figures. The Employment report is considered to be one of the most important monthly releases we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Its results are expected to heavily influence the markets and mortgage rates.
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.
Monday, January 4, 2010
Mortgage Rate Updates 01-04-2010
Monday's bond market has opened in positive territory despite early stock gains and stronger than expected economic data. The stock markets are starting the new decade with a sizable rally. The Dow is currently up 133 points while the Nasdaq has gained 32 points. The bond market is currently up 6/32, which should improve this morning's mortgage rates by approximately .375 of a discount point over Thursday's morning rates.
The Institute for Supply Management (ISM) gave us today's important data when they posted their manufacturing index for December late this morning. They reported a reading of 55.9, meaning that manufacturer sentiment about business conditions was stronger than thought. This normally is bad news for bonds and mortgage rates since it points towards a strengthening manufacturing sector. However, fortunately for mortgage borrower it appears that the data is being ignored this morning.
The fact that we are seeing a positive open f or bonds on a day with sizable stock gains and stronger than expected results from an important economic release could indicate that the bond selling over the last two weeks was indeed overkill. Since we are seeing positive movement on what should be a negative day for bonds, I am optimistic that we could see further improvements to mortgage rates in the immediate future.
The Commerce Department will post November's Factory Orders data late tomorrow morning. This data gives us a fairly important measurement of manufacturing sector strength. It is similar to the Durable Goods Orders release that was posted late last week, except this report includes orders for both durable and non-durable goods. Durable goods are items that are expected to last three or more years such as electronics and autos. Examples of non-durable goods are food and clothing. Analysts are expecting to see an increase of 0.5% in new orders. This report generally does not have a huge impact on the bond market or mortgage rates, but it can influence bond trading enough to create a minor change in rates. The smaller the increase, the better the news for mortgage rates.
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.
©Mortgage Commentary 2010
The Institute for Supply Management (ISM) gave us today's important data when they posted their manufacturing index for December late this morning. They reported a reading of 55.9, meaning that manufacturer sentiment about business conditions was stronger than thought. This normally is bad news for bonds and mortgage rates since it points towards a strengthening manufacturing sector. However, fortunately for mortgage borrower it appears that the data is being ignored this morning.
The fact that we are seeing a positive open f or bonds on a day with sizable stock gains and stronger than expected results from an important economic release could indicate that the bond selling over the last two weeks was indeed overkill. Since we are seeing positive movement on what should be a negative day for bonds, I am optimistic that we could see further improvements to mortgage rates in the immediate future.
The Commerce Department will post November's Factory Orders data late tomorrow morning. This data gives us a fairly important measurement of manufacturing sector strength. It is similar to the Durable Goods Orders release that was posted late last week, except this report includes orders for both durable and non-durable goods. Durable goods are items that are expected to last three or more years such as electronics and autos. Examples of non-durable goods are food and clothing. Analysts are expecting to see an increase of 0.5% in new orders. This report generally does not have a huge impact on the bond market or mortgage rates, but it can influence bond trading enough to create a minor change in rates. The smaller the increase, the better the news for mortgage rates.
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.
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