Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Thursday’s bond market has opened fairly flat following minor gains in stocks and no major surprises in today’s economic data. The Dow is currently up 30 points while the Nasdaq has gained 11 points. The bond market is currently down 2/32, but I don’t believe we will see much of a change in this morning’s mortgage rates.
The Labor Department gave us weekly unemployment figures early this morning. They reported that 576,000 new claims for unemployment benefits were filed last week. This was more than what analysts were expecting to see, but this data is not considered to be highly important. Therefore, it has had a minimal impact on bond trading and mortgage rates this morning.
July’s Leading Economic Indicators (LEI) was released by the Conference Board. This index attempts to measure economic activity over the next three to six months and is considered to be moderately important. It showed an increase of 0.6%, indicating we should see an increase in economic activity over the next few months. But it matched forecasts, making it a non-factor in this morning’s rates also.
Tomorrow’s only relevant data is July’s Existing Home Sales. The National Association of Realtors will release this report, giving us a measurement of housing sector strength. It covers approximately 85% of home sales in the U.S., but usually does not have a major influence on bond trading and mortgage rates unless it varies greatly from analysts’ forecasts. It is expected to show an increase from June’s sales, meaning the housing sector is strengthening.
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...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com
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