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If you are looking for a Mortgage Professional who will give you the type of service that you deserve, contact Bob Amato (NMLS # 8632) and Empire Home Mortgage Inc. (NMLS # 44882). We answer our phones seven days a week until 9PM. Put us to the test! Our toll free number is (866) 742-5227.

 Visit our website, www.empirehomemortgageinc.com . There you can get answers to all of your financing questions, view rates and search for foreclosed properties.** If you are considering locking in an interest rate for a New York mortgage or a Florida mortgage, read this post.

 This morning’s economic data gave us mixed results overall, but it was the more important releases that showed stronger than expected readings. It started with the Labor Department’s Consumer Price Index (CPI) for August at 8:30 AM ET that revealed a 0.4% increase and a 0.2% rise in the core reading. Analysts were expecting to see a 0.2% increase in both readings, meaning that prices rose more at the consumer level of the economy for food and energy than many had thought. It is good news that the more important core reading that excludes food and energy costs matched forecasts, but we can consider the report neutral-to-negative for the bond market because of the larger than expected jump in the overall reading. Any signs of inflation will be a concern to the bond market because of the slowing economic activity. The fear is that if inflation is gaining ground now, it will rapidly rise once the economy picks up steam. And since inflation erodes the value of a bond’s future fixed interest payments, it will drive bond prices lower and mortgage rates higher.

 The bit of good news this morning also came from the Labor Department, who said that 428,000 new claims for unemployment benefits were filed last week. This was a much larger number than the 410,000 initial claims that was expected, but more importantly it was a sizable increase from the previous week’s total when analysts were forecasting a decline. That means that the employment sector was weaker than thought last week, making the news favorable for the bond market and mortgage pricing. Unfortunately though, because this report tracks a single week’s worth of new claims, the other data is more important to the markets and had a bigger influence on this morning’s trading.

 August's Industrial Production data was posted at 9:15 AM ET today with an announcement of a 0.2% increase in output at our factories, mines and utilities. Forecasts had called for no change from July’s level of production, indicating a slightly stronger than expected manufacturing sector. That is also negative news for the bond market as it points towards economic growth.

 Tomorrow morning brings us one piece of relevant economic data. The University of Michigan will release their Index of Consumer Sentiment late tomorrow morning, giving us an indication of consumer confidence. Consumer confidence is tracked because it helps us measure 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 and mortgage rates. It is expected to show a reading of 56.3, which would mean confidence rose from August's level. That would be considered bad news for bonds and mortgage rates because strengthening consumer spending fuels economic growth.

 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.

 Empire Home Mortgage Inc. is a registered Mortgage Broker with the New York and Florida State Banking Departments and our loans are arranged through third party providers.

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