Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Thursday’s bond market has opened in positive territory, following suit with stocks. The stock markets are continuing yesterday’s positive tone, but to a much lesser scale. The Dow is currently up 23 points while the Nasdaq has gained 4 points. The bond market is currently up 8/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.
Neither of today’s economic releases are considered to be of high importance to the markets and have not had much influence on this morning’s mortgage rates. The Labor Department reported that 545,000 new claims for unemployment benefits were filed last week. This was lower than expected and can be considered negative news for bonds. However, the short period that this report tracks usually means it does not heavily influence trading or mortgage pricing.
August’s Housing Starts report was also posted this morning, showing an increase in starts of new homes from July to August. This data helps us measure housing sector strength, but is also not one of the more important reports we see each month. Its results also have had little impact on this morning’s mortgage rates.
There is no relevant data scheduled for release tomorrow, so look for the stock markets to influence bond trading. I would not be surprised to see bonds move in the same direction as stocks. Either way, we probably will have a relatively calm day in mortgage rates tomorrow unless something totally unexpected happens.
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
Thursday, September 17, 2009
Wednesday, September 16, 2009
Massachusetts Mortgage Rate Commentary 09/16/2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Wednesday’s bond market opened in positive territory following the release of this morning’s key inflation data that showed no significant surprises, but has since given back those gains. The stock markets are in positive ground with the Dow up 40 points and the Nasdaq up 11 points. The bond market is currently down 2/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
There were two reports posted this morning. The first was August’s Consumer Price Index (CPI) that revealed a 0.4% increase in the overall reading and a 0.1% rise in the core data. The increase in the overall reading was slightly higher than forecasts, but the more important core data reading that excludes volatile food and energy prices matched expectations. This means that prices at the consumer level of the economy rose modestly last month. That is good news for bond prices and mortgage rates because rapid increases in inflation makes long-term securities such as mortgage-related bonds less attractive to investors. The end result is almost always higher mortgage rates for borrowers.
The second report of the day was August’s Industrial Production data. It showed a 0.8% increase in production at U.S. factories, mines and utilities. This was slightly more than expected, meaning manufacturing activity was a little stronger than thought. However, the difference was not enough to cause much concern in the bond market.
Tomorrow’s data is much less important to the markets than the reports released the past two days. The Labor Department will give us last week’s unemployment filings. They are expected to announce that 555,000 new claims for unemployment benefits were filed last week. This would be a small increase from the previous week, but unless we see a wide variance between forecasts and the actual number, this data likely will have little impact on tomorrow’s mortgage pricing.
August’s Housing Starts report will also be posted early tomorrow morning. This report is also considered to be low-to-moderately important and will probably not have a significant impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand. It is expected to show little change in starts of new home construction between July and August.
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
Wednesday’s bond market opened in positive territory following the release of this morning’s key inflation data that showed no significant surprises, but has since given back those gains. The stock markets are in positive ground with the Dow up 40 points and the Nasdaq up 11 points. The bond market is currently down 2/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
There were two reports posted this morning. The first was August’s Consumer Price Index (CPI) that revealed a 0.4% increase in the overall reading and a 0.1% rise in the core data. The increase in the overall reading was slightly higher than forecasts, but the more important core data reading that excludes volatile food and energy prices matched expectations. This means that prices at the consumer level of the economy rose modestly last month. That is good news for bond prices and mortgage rates because rapid increases in inflation makes long-term securities such as mortgage-related bonds less attractive to investors. The end result is almost always higher mortgage rates for borrowers.
The second report of the day was August’s Industrial Production data. It showed a 0.8% increase in production at U.S. factories, mines and utilities. This was slightly more than expected, meaning manufacturing activity was a little stronger than thought. However, the difference was not enough to cause much concern in the bond market.
Tomorrow’s data is much less important to the markets than the reports released the past two days. The Labor Department will give us last week’s unemployment filings. They are expected to announce that 555,000 new claims for unemployment benefits were filed last week. This would be a small increase from the previous week, but unless we see a wide variance between forecasts and the actual number, this data likely will have little impact on tomorrow’s mortgage pricing.
August’s Housing Starts report will also be posted early tomorrow morning. This report is also considered to be low-to-moderately important and will probably not have a significant impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand. It is expected to show little change in starts of new home construction between July and August.
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
Tuesday, September 15, 2009
Massachusetts Mortgage Rate Commentary 9/15/09
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Tuesday’s bond market initially opened well in negative territory after this morning’s economic data revealed stronger than expected results but has since recovered a good portion of those losses. The stock markets are showing minor gains with the Dow up 4 points and the Nasdaq up 6 points. The bond market is currently down 3/32, but well above earlier levels. This will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
The Commerce Department announced this morning that sales at retail level establishments rose 2.7% last month, greatly exceeding analysts’ forecasts of a 1.9% increase. Even when volatile auto transactions are excluded, sales were well above forecasts. This means that consumers spent much more last month than many had thought. That is bad news for bonds and mortgage rates because consumer spending makes up two-thirds of the U.S. economy.
The second important piece of data posted this morning also did not due much good for bonds. The Labor Department reported that August’s Producer Price Index (PPI) rose 1.7%, more than twice the increase that was expected. The more important core data reading that excludes more volatile food and energy prices came in up 0.2% when it was expected to rise 0.1%. This means that prices at the producer level of the economy rose more rapidly than analysts had thought. That is also bad news for bonds because rising inflation erodes the value of a bond’s future fixed interest payments and makes them less appealing to investors. The result of rising inflation is usually higher mortgage rates. In addition, today’s PPI reading raises concern about tomorrow’s CPI report that is even more important than this morning’s release.
August’s Consumer Price Index (CPI) will be released early tomorrow morning. The CPI is one of the most important reports we see each and every month. It is the sister report of today’s PPI and is considered to be a key indicator of inflation at the consumer level of the economy. As with the PPI, there are two readings in the report- the overall index and the core data reading. Current forecasts are calling for a 0.3% increase in the overall reading and a 0.1% rise in the core data reading. A larger increase in the core data would likely lead to higher mortgage rates tomorrow morning.
Also scheduled for tomorrow morning is August’s Industrial Production data. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important but could help change mortgage rates if there is a significant difference between forecasts and the actual reading. Analysts are currently expecting to see a 0.7% increase in production. A higher level of output could lead to higher mortgage rates, while a weaker than expected figure would be considered good news for bonds and rates.
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...
©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
Tuesday’s bond market initially opened well in negative territory after this morning’s economic data revealed stronger than expected results but has since recovered a good portion of those losses. The stock markets are showing minor gains with the Dow up 4 points and the Nasdaq up 6 points. The bond market is currently down 3/32, but well above earlier levels. This will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
The Commerce Department announced this morning that sales at retail level establishments rose 2.7% last month, greatly exceeding analysts’ forecasts of a 1.9% increase. Even when volatile auto transactions are excluded, sales were well above forecasts. This means that consumers spent much more last month than many had thought. That is bad news for bonds and mortgage rates because consumer spending makes up two-thirds of the U.S. economy.
The second important piece of data posted this morning also did not due much good for bonds. The Labor Department reported that August’s Producer Price Index (PPI) rose 1.7%, more than twice the increase that was expected. The more important core data reading that excludes more volatile food and energy prices came in up 0.2% when it was expected to rise 0.1%. This means that prices at the producer level of the economy rose more rapidly than analysts had thought. That is also bad news for bonds because rising inflation erodes the value of a bond’s future fixed interest payments and makes them less appealing to investors. The result of rising inflation is usually higher mortgage rates. In addition, today’s PPI reading raises concern about tomorrow’s CPI report that is even more important than this morning’s release.
August’s Consumer Price Index (CPI) will be released early tomorrow morning. The CPI is one of the most important reports we see each and every month. It is the sister report of today’s PPI and is considered to be a key indicator of inflation at the consumer level of the economy. As with the PPI, there are two readings in the report- the overall index and the core data reading. Current forecasts are calling for a 0.3% increase in the overall reading and a 0.1% rise in the core data reading. A larger increase in the core data would likely lead to higher mortgage rates tomorrow morning.
Also scheduled for tomorrow morning is August’s Industrial Production data. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important but could help change mortgage rates if there is a significant difference between forecasts and the actual reading. Analysts are currently expecting to see a 0.7% increase in production. A higher level of output could lead to higher mortgage rates, while a weaker than expected figure would be considered good news for bonds and rates.
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...
©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
Monday, September 14, 2009
Massachusetts Mortgage Rate Commentary 09/14/2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Monday’s bond market has opened in negative territory despite a flat morning in stocks and no economic data on today’s calendar. The stock markets are calm with the Dow down 8 points and the Nasdaq nearly unchanged from Friday’s close. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
This week brings us the release of five relevant economic reports that may influence mortgage rates, but none of them are scheduled for release today. A couple of the reports are considered to be highly important to the financial and mortgage markets, meaning that we may see significant changes to rates this week. There is a very good chance of seeing noticeable changes in rates at least one day, if not several days this week.
There are two highly important reports being released early tomorrow morning. The first is the release of August’s Retail Sales report. It will give us a measurement of consumer spending, which is very important to the markets because consumer spending makes up two-thirds of the U.S. economy. Current forecasts are calling for a 1.9% increase in sales. The sizable jump is expected to come from auto sales that were fueled by the Cash For Clunkers program. Analysts are calling for a 0.4% rise in sales if auto sales are excluded. A larger than expected increase would be considered bad news for bonds and likely lead to an increase in mortgage pricing tomorrow.
The second important piece of data is the release of August’s Producer Price Index (PPI), also being posted early tomorrow morning. This report will give us a very important measurement of inflationary pressures at the producer level of the economy. There are two readings that analysts follow in this release. They are the overall index and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. Analysts are currently predicting a 08% increase in the overall index, and a rise of 0.1% in the core data. Stronger than expected readings could fuel inflation concerns in the bond market and lead to an increase in mortgage rates tomorrow morning. Both of the day’s reports are considered to be extremely important to the markets and mortgage rates.
Overall, I think we need to label tomorrow as the most important day of the week with the Retail Sales and PPI reports both being posted that day. However, Wednesday’s CPI release is also extremely important to the markets, so Wednesday cannot be ignored either. We could see a significant change to rates this week if the major reports vary greatly from forecasts.
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...
©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
Monday’s bond market has opened in negative territory despite a flat morning in stocks and no economic data on today’s calendar. The stock markets are calm with the Dow down 8 points and the Nasdaq nearly unchanged from Friday’s close. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
This week brings us the release of five relevant economic reports that may influence mortgage rates, but none of them are scheduled for release today. A couple of the reports are considered to be highly important to the financial and mortgage markets, meaning that we may see significant changes to rates this week. There is a very good chance of seeing noticeable changes in rates at least one day, if not several days this week.
There are two highly important reports being released early tomorrow morning. The first is the release of August’s Retail Sales report. It will give us a measurement of consumer spending, which is very important to the markets because consumer spending makes up two-thirds of the U.S. economy. Current forecasts are calling for a 1.9% increase in sales. The sizable jump is expected to come from auto sales that were fueled by the Cash For Clunkers program. Analysts are calling for a 0.4% rise in sales if auto sales are excluded. A larger than expected increase would be considered bad news for bonds and likely lead to an increase in mortgage pricing tomorrow.
The second important piece of data is the release of August’s Producer Price Index (PPI), also being posted early tomorrow morning. This report will give us a very important measurement of inflationary pressures at the producer level of the economy. There are two readings that analysts follow in this release. They are the overall index and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. Analysts are currently predicting a 08% increase in the overall index, and a rise of 0.1% in the core data. Stronger than expected readings could fuel inflation concerns in the bond market and lead to an increase in mortgage rates tomorrow morning. Both of the day’s reports are considered to be extremely important to the markets and mortgage rates.
Overall, I think we need to label tomorrow as the most important day of the week with the Retail Sales and PPI reports both being posted that day. However, Wednesday’s CPI release is also extremely important to the markets, so Wednesday cannot be ignored either. We could see a significant change to rates this week if the major reports vary greatly from forecasts.
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...
©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
Massachusetts Mortgage Rate Commentary week of 9/13/2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
This week brings us the release of five relevant economic reports that may influence mortgage rates. A couple of these reports are considered to be highly important to the financial and mortgage markets, meaning that we may see significant changes to rates this week. There is a very good chance of seeing noticeable changes in rates at least one day, if not several days this week. There is no relevant news scheduled to be posted tomorrow, so look for the stock markets to be the biggest force behind bond trading and changes to mortgage rates until we get to the data releases.
There are two highly important reports scheduled to be posted early Tuesday morning. The first is the release of August’s Retail Sales report. It will give us a measurement of consumer spending, which is very important to the markets because consumer spending makes up two-thirds of the U.S. economy. Current forecasts are calling for a 1.9% increase in sales. The sizable jump is expected to come from auto sales that were fueled by the Cash For Clunkers program. Analysts are calling for a 0.4% rise in sales if auto sales are excluded. A larger than expected increase would be considered bad news for bonds and likely lead to an increase in mortgage pricing.
The second important piece of data Tuesday morning is the release of August’s Producer Price Index (PPI). This report will give us a very important measurement of inflationary pressures at the producer level of the economy. There are two readings that analysts follow in this release. They are the overall index and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. Analysts are currently predicting a 08% increase in the overall index, and a rise of 0.1% in the core data. Stronger than expected readings could fuel inflation concerns in the bond market and lead to an increase in mortgage rates Tuesday morning. Both of the day’s reports are considered to be extremely important to the markets and mortgage rates.
August’s Consumer Price Index (CPI) will be released Wednesday morning. The CPI is one of the most important reports we see each and every month. It is considered to be a key indicator of inflation at the consumer level of the economy. As with its sister PPI report, there are two readings in the report- the overall index and the core data reading. Current forecasts are calling for a 0.3% increase in the overall reading and a 0.1% rise in the core data reading. A larger increase in the core data would likely lead to higher mortgage rates Wednesday morning.
Also scheduled for Wednesday morning is August’s Industrial Production data. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important but could help change mortgage rates if there is a significant difference between forecasts and the actual reading. Analysts are currently expecting to see a 0.7% increase in production. A higher level of output could lead to higher mortgage rates, while a weaker than expected figure would be considered good news for bonds and rates.
August’s Housing Starts report will be posted early Thursday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand, but is usually considered to be of low importance to the financial markets. It is expected to show little change between July’s and August’s starts.
Overall, I think we need to label Tuesday as the most important day of the week with the Retail Sales and PPI reports both being posted that day. However, Wednesday’s CPI release is also extremely important to the markets, so Wednesday cannot be ignored either. Monday or Friday will probably end up being the calmest days, but we still may see minor changes to rates those days. But we could see a significant change to rates this week if the major reports vary greatly from forecasts.
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...
©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
This week brings us the release of five relevant economic reports that may influence mortgage rates. A couple of these reports are considered to be highly important to the financial and mortgage markets, meaning that we may see significant changes to rates this week. There is a very good chance of seeing noticeable changes in rates at least one day, if not several days this week. There is no relevant news scheduled to be posted tomorrow, so look for the stock markets to be the biggest force behind bond trading and changes to mortgage rates until we get to the data releases.
There are two highly important reports scheduled to be posted early Tuesday morning. The first is the release of August’s Retail Sales report. It will give us a measurement of consumer spending, which is very important to the markets because consumer spending makes up two-thirds of the U.S. economy. Current forecasts are calling for a 1.9% increase in sales. The sizable jump is expected to come from auto sales that were fueled by the Cash For Clunkers program. Analysts are calling for a 0.4% rise in sales if auto sales are excluded. A larger than expected increase would be considered bad news for bonds and likely lead to an increase in mortgage pricing.
The second important piece of data Tuesday morning is the release of August’s Producer Price Index (PPI). This report will give us a very important measurement of inflationary pressures at the producer level of the economy. There are two readings that analysts follow in this release. They are the overall index and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. Analysts are currently predicting a 08% increase in the overall index, and a rise of 0.1% in the core data. Stronger than expected readings could fuel inflation concerns in the bond market and lead to an increase in mortgage rates Tuesday morning. Both of the day’s reports are considered to be extremely important to the markets and mortgage rates.
August’s Consumer Price Index (CPI) will be released Wednesday morning. The CPI is one of the most important reports we see each and every month. It is considered to be a key indicator of inflation at the consumer level of the economy. As with its sister PPI report, there are two readings in the report- the overall index and the core data reading. Current forecasts are calling for a 0.3% increase in the overall reading and a 0.1% rise in the core data reading. A larger increase in the core data would likely lead to higher mortgage rates Wednesday morning.
Also scheduled for Wednesday morning is August’s Industrial Production data. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important but could help change mortgage rates if there is a significant difference between forecasts and the actual reading. Analysts are currently expecting to see a 0.7% increase in production. A higher level of output could lead to higher mortgage rates, while a weaker than expected figure would be considered good news for bonds and rates.
August’s Housing Starts report will be posted early Thursday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand, but is usually considered to be of low importance to the financial markets. It is expected to show little change between July’s and August’s starts.
Overall, I think we need to label Tuesday as the most important day of the week with the Retail Sales and PPI reports both being posted that day. However, Wednesday’s CPI release is also extremely important to the markets, so Wednesday cannot be ignored either. Monday or Friday will probably end up being the calmest days, but we still may see minor changes to rates those days. But we could see a significant change to rates this week if the major reports vary greatly from forecasts.
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...
©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
Friday, September 11, 2009
Massachusetts Mortgage Rate Commentary 09/11/2009
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Friday’s bond market has opened in positive territory despite stronger than expected economic news. The stock markets are showing minor losses with the Dow down 10 points and the Nasdaq down 1 point. The bond market is currently up 17/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.
The University of Michigan posted their Index of Consumer Sentiment late this morning, announcing a reading of 70.2. This was a sizable increase from August’s final reading and higher than what analysts had expected. This means that consumers are more optimistic about their own financial situations than many had thought. That can be considered bad news for bonds and mortgage rates because it hints that consumers are more apt to make large purchases in the near future. However, it appears the data is of no concern to traders this morning.
This morning’s bond gains can partly be attributed to a good auction yesterday of 30-year Bonds. The results of the sale indicate that investors still have an appetite for U.S. securities. This has helped boost long-term securities such as mortgage-related bonds.
Next week brings us the release of several important reports including two key inflation readings and an extremely important measurement of consumer spending. None of the relevant reports are scheduled for release Monday, so I am expecting stock prices to heavily influence bond trading and mortgage rates until we get to the week’s data. Look for more details on next week’s events in Sunday’s weekly preview.
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...
©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
Friday’s bond market has opened in positive territory despite stronger than expected economic news. The stock markets are showing minor losses with the Dow down 10 points and the Nasdaq down 1 point. The bond market is currently up 17/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.
The University of Michigan posted their Index of Consumer Sentiment late this morning, announcing a reading of 70.2. This was a sizable increase from August’s final reading and higher than what analysts had expected. This means that consumers are more optimistic about their own financial situations than many had thought. That can be considered bad news for bonds and mortgage rates because it hints that consumers are more apt to make large purchases in the near future. However, it appears the data is of no concern to traders this morning.
This morning’s bond gains can partly be attributed to a good auction yesterday of 30-year Bonds. The results of the sale indicate that investors still have an appetite for U.S. securities. This has helped boost long-term securities such as mortgage-related bonds.
Next week brings us the release of several important reports including two key inflation readings and an extremely important measurement of consumer spending. None of the relevant reports are scheduled for release Monday, so I am expecting stock prices to heavily influence bond trading and mortgage rates until we get to the week’s data. Look for more details on next week’s events in Sunday’s weekly preview.
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...
©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
Thursday, September 10, 2009
Massachusetts Mortgage Rate Commentary 09-10-09
Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Thursday’s bond market has opened in positive territory despite early stock gains and mixed economic news. The stock markets are in positive territory still with the Dow up 13 points and the Nasdaq up 7 points. The bond market is currently up 14/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.
July’s Goods and Services Trade Balance was this morning’s only monthly economic news released. It showed the trade deficit stood at $32.0 billion in July, which was much higher than expected. However, this news is not usually very influential towards mortgage rates, so its impact has been minimal.
The Labor Department gave us last week’s unemployment figures, announcing that 550,000 new claims for benefits were filed last week. This was lower than expected and can be considered negative towards bonds and mortgage rates. But this data also is not considered to be highly important to mortgage rates because it tracks only a week’s worth of claim.
Yesterday’s Beige Book didn’t reveal any significant surprises, but it did indicate that economic activity increased in most regions of the U.S. The labor market has not shown significant signs of improvement, so there is still a cautious optimism towards an economic recovery in the near future.
Yesterday’s 10-year Treasury Note sale went fairly well, leading to hope that today’s 30-year auction will be met with a strong demand. If there is indeed strong investor interest in today’s sale, we may see bond prices rise further and mortgage rates possibly revise lower this afternoon.
Tomorrow’s only relevant data will come from the University of Michigan. Their Index of Consumer Sentiment will give us an indication of consumer confidence, which hints at consumers' willingness to spend. If confidence is rising, consumers are more apt to make large purchases. But, if they are growing more concerned of their personal financial situations, they probably will delay making that large purchase. This influences future consumer spending data and can impact the financial markets. It is expected to show a reading of 67.8 that would mean confidence rose from August’s final reading. That would be considered bad news for bonds 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...
©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
Thursday’s bond market has opened in positive territory despite early stock gains and mixed economic news. The stock markets are in positive territory still with the Dow up 13 points and the Nasdaq up 7 points. The bond market is currently up 14/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.
July’s Goods and Services Trade Balance was this morning’s only monthly economic news released. It showed the trade deficit stood at $32.0 billion in July, which was much higher than expected. However, this news is not usually very influential towards mortgage rates, so its impact has been minimal.
The Labor Department gave us last week’s unemployment figures, announcing that 550,000 new claims for benefits were filed last week. This was lower than expected and can be considered negative towards bonds and mortgage rates. But this data also is not considered to be highly important to mortgage rates because it tracks only a week’s worth of claim.
Yesterday’s Beige Book didn’t reveal any significant surprises, but it did indicate that economic activity increased in most regions of the U.S. The labor market has not shown significant signs of improvement, so there is still a cautious optimism towards an economic recovery in the near future.
Yesterday’s 10-year Treasury Note sale went fairly well, leading to hope that today’s 30-year auction will be met with a strong demand. If there is indeed strong investor interest in today’s sale, we may see bond prices rise further and mortgage rates possibly revise lower this afternoon.
Tomorrow’s only relevant data will come from the University of Michigan. Their Index of Consumer Sentiment will give us an indication of consumer confidence, which hints at consumers' willingness to spend. If confidence is rising, consumers are more apt to make large purchases. But, if they are growing more concerned of their personal financial situations, they probably will delay making that large purchase. This influences future consumer spending data and can impact the financial markets. It is expected to show a reading of 67.8 that would mean confidence rose from August’s final reading. That would be considered bad news for bonds 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...
©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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