Mortgage Rate Advice

Rate Lock Advisory - Wednesday Apr. 1st




Wednesday's bond market has opened flat after this morning's economic data failed to move the markets. The stock markets are showing early gains with the Dow up 80 points and the Nasdaq up 13 points. The bond market is currently up 3/32, but we will likely see an increase in this morning's mortgage rates of approximately .125 of a discount point.

The Institute for Supply Management (ISM) said late this morning that their manufacturing index rose from 35.8 in February to 36.3 in March. This means that manufacturer sentiment rose slightly more than what analysts had expected. However, the difference was not sufficient enough to really hurt mortgage rates this morning.

Tomorrow morning we will see February's Factory Orders data. This data gives us an indication of manufacturing sector strength, but is considered moderately important. It is expected to show a 1.4% rise in new orders according to new forecasts. A smaller increase would be good news for bonds and mortgage rates while a larger rise could push mortgage pricing slightly higher tomorrow.

The Labor Department will be giving us weekly unemployment figures tomorrow morning. These weekly figures usually have little influence on rates, but with Friday's big monthly employment report the following day, tomorrow's numbers may influence trading if they vary much from forecasts. I don't expect this release to create a significant movement in the markets or rates, but may influence them slightly more than usual. Analysts are predicting that 650,000 new claims for benefits were filed last week.

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... 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 2009

* Please note that if you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.