Daily Mortgage Rate Lock Advisory

Daily Mortgage Interest Rate Lock Advice for 12/31/2010

Friday’s bond market has opened in constructive territory as investors look to close the year out on a encouraging note. The stock markets are showing minor losses of 18 points in the Dow and 11 points in the Nasdaq. The bond market is currently up 10/32, which should improve this morning’s mortgage interest rates by approximately .125 of a discount point.

There is nothing of importance this morning, making it highly likely that we will crawl into the end of the year. As expected, trading is extremely light this morning and there is no reason to think that will change before today’s 2:00 PM ET close. The stock markets are technically open all day, but it doesn’t look many traders went to work. We will probably see a little fluctuation in the major indexes and bond prices, but I would be highly surprised if we saw significant movement or an intra-day change to mortgage interest rates.

Next week brings us the release of several relevant economic reports. The week opens and closes with important reports, giving us a good look at current financial conditions. Monday has December’s Institute for Supply Management’s manufacturing index. This is usually the first most current report we see month. It is posted the first business day of the month and covers the preceding month. The data tracks manufacturer sentiment, giving us an indication of manufacturing sector strength. It is considered to be one of the more important reports we see each month.

The week closes next Friday with the almighty monthly Employment report. In between the Institute for Supply Management index and Employment numbers there are a couple more events scheduled, including the minutes from the past FOMC meeting and a couple of less important financial reports. Late in the week, Fed Chairman Bernanke will speak, drawing the close attention of the markets also. I am actually looking forward to some of this key data as I still believe December’s spike in interest rates was an overreaction. I suspect we will still results that remind us we still have significant hurdles facing the economy and this month’s optimism was premature. If this is the case, we should see mortgage interest rates move lower next week.

Look for more details on next week’s events in Sunday’s weekly preview. I would like to take this opportunity to wish everyone and theirs a wonderful and safe holiday weekend and a prosperous new year!

If you are considering financing/refinancing a home, I would…. Lock if your closing takes place within 7 days… Float if your closing takes place between 8 and 20 days… Float if your closing takes place between 21 and 60 days… if your closing takes place over 60 days from now…

Tags: bond, bond prices, economic reports, Employment, employment numbers, fomc meeting, institute for supply management, interest, lock, Management, management index, manufacturing, minor losses, Mortgage, mortgage interest rate, mortgage interest rates, stock, Supply, Trade, upbeat note

Tarullo, International cooperation and financial regulatory modernization

Testimony before the Subcommittee on Security and International Trade and Finance, Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Washington, D.C.

Tags: Banking, Committee, Finance, finance committee, Housing, international cooperation, international trade, modernization, Security, Senate, Subcommittee, Testimony, Trade, u s senate, Urban, urban affairs, washington d c

Tarullo, International cooperation to modernize financial regulation

Testimony before the Subcommittee on Security and International Trade and Finance, Committee on Banking, Housing, and Urban Affairs, Washington, D.C.

Tags: Banking, Committee, D.C., Finance, finance committee, Housing, International, international trade, Security, Subcommittee, Testimony, Trade, Urban, urban affairs, Washington, washington d c

Daily Mortgage Rate Lock Advisory – Wednesday Feb. 11th

Rate Lock Advisory – Wednesday Feb. 11th

Wednesday’s bond market has opened in positive territory again as traders continue to digest yesterday’s activities on the economic stimulus and Fed bailout packages. The stock markets are rebounding from yesterday’s sell off but have only been able to recover part this losses so far. The Dow is currently 55 points and the Nasdaq is up 8 points. The bond market is currently up 8/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

Today’s only economic news was December’s Goods and Services Trade Balance that showed a trade deficit of $39.9 billion in December. This was a larger than expected deficit with latest forecasts calling for it to stand at $35.7 billion. But it was still the lowest trade deficit since February 2003. Unfortunately, this data is not considered to be of high importance to the bond market and mortgage rates.

The second stage of this week’s quarterly refunding or sales of govern ment debt is today with 10-year Treasury Notes being sold. The results of the sale will be posted at 1:00 PM ET. If it was met with strong demand, easing recent fears about the amount of debt being sold to fund the economic stimulus and Fed bailout programs, we should see bond prices move higher during afternoon trading. This may lead to a downward revision in mortgage rates. However, if the sale was met with a poor demand, we could see selling in bonds this afternoon that will lead to upward revisions to mortgage rates.

Tomorrow morning brings us the release of January’s Retail Sales data. This report is very important to the financial markets because it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any related data is watched quite closely. If tomorrow’s report reveals weaker than expected sales, the bond market should thrive and mortgage rates will fall. However, a stronger reading than current forecast of a d ecline in sales of 0.3% may drive mortgage rates higher tomrorow.

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.

Tags: 10 year treasury, bond, bond market, bond prices, closing, deficit, downward revision, economic stimulus, fed bailout, Float, lock, mortgage rates, retail sales data, stock markets, Trade, U.S., upward revisions, Wednesday

Daily Mortgage Rate Lock Advisory – Wednesday Dec. 10th

Rate Lock Advisory – Wednesday Dec. 10th

Wednesday’s bond market has opened in negative territory following a strong opening in stocks. The stock markets are rebounding from yesterday’s sell-off with the Dow currently up 120 points and the Nasdaq up 26 points. The bond market is currently down 17/32, but we will likely still see an improvement in this morning’s mortgage rates of approximately .250 – .375 of a discount point due to strength in bonds late yesterday.

There is no relevant economic news scheduled for release today. October’s Goods and Services Trade Balance report will be posted early tomorrow morning along with weekly unemployment figures. The Trade Balance report gives the size of the U.S. trade deficit, but it is the week’s least important release. It is expected to show a $53.5 billion trade deficit. Unless it varies greatly from forecasts, I don’t expect it to affect mortgage pricing.

The Labor Department will post last week’s unemployment claims figures tomorrow also. They are expected to show that 525,000 new claims for benefits were filed last week. While a larger number would be good news for bonds, the truth is that this data is not very influential to bonds and mortgage rates because it covers only a week’s worth of claims. But, with no highly important data scheduled for release, if it varies much from forecasts we may see bonds react enough to slightly impact mortgage rates.

Also, there is a 10-year Treasury Note auction tomorrow that may hurt or help boost bond prices, depending on how strong of a demand there is in the sale. Results will be posted at 1:00 PM ET. If there was a strong demand for the sale, we may see bonds move higher and mortgage rates revise lower during afternoon trading. However, a lackluster interest could lead to higher mortgage pricing.

Friday morning brings us the release of a couple of important reports. The two most important are November’s Retail Sales and Producer Price Index (PPI) reports. The sales report tracks consumer spending while the PPI gives us an important measurement of inflationary pressures at the producer level of the economy. Both can lead to large swings in the markets and mortgage pricing. The third report of the day will be December’s preliminary reading to the University of Michigan’s Index of Consumer Sentiment, but it less important than the first two.

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… Lock if my closing was taking place between 21 and 60 days… Lock 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.

Tags: 10 year treasury, 10 year treasury note, balance report, bond, closing, lackluster interest, lock, mortgage rates, negative territory, producer price index, producer price index ppi, Release, report, Trade, U.S., unemployment claims, unemployment figures, week

Daily Mortgage Rate Lock Advisory – Tuesday Dec. 9th

Rate Lock Advisory – Tuesday Dec. 9th

Tuesday’s bond market has opened flat with no relevant economic news scheduled for release today. The stock markets are mixed with the Dow down 103 points and the Nasdaq up 12 points. The bond market is currently nearly unchanged from yesterday’s close, but we will still see an increase in this morning’s mortgage rates of approximately .250 of a discount due to weakness late yesterday.

This week is moderately busy in terms of the number of economic releases scheduled for release. There are four on the agenda but two of them are considered to be very important that can heavily influence the markets and mortgage pricing. In addition, there is a 10-year Treasury Note auction Thursday that may hurt or help boost bond prices, depending on how strong of a demand there is in the sale. Since all of the data is scheduled for release Thursday and Friday, the most movement in rates will likely be the latter part of the week.

There is no relevant economic n ews scheduled for release today or tomorrow. The first data is October’s Goods and Services Trade Balance report early Thursday morning. This report gives the size of the U.S. trade deficit, but it is the week’s least important release. It is expected to show a $54.0 billion trade deficit. Unless it varies greatly from forecasts, I don’t expect it to affect mortgage pricing.

Friday brings us the release of all of this week’s important data with November’s Retail Sales and Producer Price Index (PPI) being posted. I am expecting to see the most movement in rates Friday, but I believe the general atmosphere for mortgage rates is still negative.

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… Lock if my closing was taking place between 21 and 60 days… Lock if my closing was taking place over 60 days from now… This is only m y 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.

Tags: 10 year treasury, 10 year treasury note, balance report, bond, bond prices, closing, economic releases, first data, lock, producer price index, producer price index ppi, refinancing a home, Release, Thursday, Trade, U.S., week, year treasury note

Rate Lock Advisory – Thursday Oct. 9th

Rate Lock Advisory – Thursday Oct. 9th

Thursday’s bond market has opened down sharply despite a lackluster opening in stocks. The stock markets are mixed with the Dow down 16 points and the Nasdaq up 20 points. The bond market is currently down 33/32, which will likely push this morning’s mortgage rates higher by approximately .375 – .500 of a discount point.

The markets still seem to be lost and unable to gain and solid traction. I am surprised that bonds are taking as much of a beating today as they are, especially with no solid gains in stocks. However, this could mean some traders feel the bottom is near for the stock markets and that funds are likely to shift back into stocks very soon. Accordingly, we may want to consider locking a rate is still floating and if closing in the immediate future.

There was no monthly or quarterly economic news released today. The only data posted was weekly unemployment figures from the Labor Department. They reported that 478,000 new claims for benefits were filed last week. This was a decline from the previous week’s 498,000 claims but was slightly higher than forecasts. But, since this data is not considered to be of high importance since it tracks only a week’s worth of claims, it has not been able to help bonds this morning.

August’s Goods and Services Trade Balance will be released early tomorrow, but is not likely to cause much of a change in mortgage pricing. It will give us the size of the U.S. trade deficit, but usually does not lead to significant movement in bond prices or mortgage rates. It is expected to show a $59.0 billion trade deficit.

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.

Tags: bond, bond market, bond prices, closing, immediate future, labor department, lock, mortgage rates, rate, refinancing a home, stock markets, Thursday, Trade, trade balance, trade deficit, U.S., unemployment figures, week

Daily Rate Lock Recommendation – 05/09/2008 12:39:00 PM EST

Friday’s bond market has opened in positive territory following early stock weakness. The stock markets are showing losses with the Dow down 106 points and the Nasdaq down 8 points. The bond market is currently up 9/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

March’s Goods and Services Trade Balance report was today’s only economic data on the calendar. It revealed a $58.2 billion trade deficit that was well below forecasts. However, this data is not considered to be of high importance to the bond market or mortgage rates and therefore has had little impact on the markets today.

This was a light week for economic releases, so I did not expect to see much fluctuation in the markets and mortgage rates. I still feel bond yields are at the upper end of a cycle and that stock prices have more room to fall. I am expecting stocks to move lower, making bonds more attractive to investors. This shou ld lead to funds shifting out of stocks and into bonds in the near future. Accordingly, I am holding the float recommendations for the time being.

Next week is busier in terms of economic reports than this week was. Generally speaking, it will be an average week with five relevant reports on tap. However, two of those are considered to be very important to the markets and mortgage rates. There is no relevant news scheduled for release Monday, but look for details on next week’s event 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… 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 inter est of all/any other borrowers.

Tags: balance report, bond, bond market, bond yields, closing, economic releases, economic reports, Float, mortgage rates, refinancing a home, relevant news, relevant reports, stock, stock markets, today, Trade, week

Daily Rate Lock Recommendation – 05/08/2008 12:38:00 PM EST

Thursday’s bond market has up sharply, continuing yesterday’s late rally. The stock markets are also in positive territory with the Dow up 56 points and the Nasdaq up 11 points. The bond market is currently up 27/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

The only economic news posted this morning were the weekly unemployment figures from the Labor Department. They said that 365,000 new claims for benefits were filed last week. This was a smaller number than was expected, but fortunately has not affected bond prices or mortgage rates.

Yesterday’s 10-year Note auction was not met with a very good demand. Despite this we saw bond prices rise during afternoon trading as the stock markets faltered. This is a sign that funds were being shifted from stocks into bonds, which may indicate an expectation of weakness in stocks. If the major stock indexes do begin to fall, we should see bonds benefi t and mortgage rates move lower.

Today’s 30-year Bond sale could very well have the same result as yesterday’s auction did. However, it appears that investors may not be so quick to react to its results. With no important economic data on tap tomorrow, we could see further gains in bonds, especially if stocks turn south.

March’s Goods and Services Trade Balance report will be released early tomorrow morning. This report gives us the size of the U.S. trade deficit but likely will not have much of an impact on the bond market or mortgage pricing. It is expected to show a $61.3 billion trade deficit.

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 i f 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.

Tags: balance report, bond, bond market, bond prices, closing, Float, labor department, major stock indexes, mortgage rates, refinancing a home, stock, stock markets, Trade, trade balance, U.S., unemployment figures, yesterday