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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.

 August's Retail Sales report was posted early this morning, revealing no change in overall sales at the retail level of the economy and a 0.1% increase if more volatile auto related transactions were excluded. Both readings fell short of forecasts (0.2% and 0.3% increases respectively), meaning consumers spent less than many had thought last month. That makes the data good news for the bond market and mortgage rates because slowing consumer spending slows overall economic growth.

 The second key report of the day was August’s Producer Price Index (PPI) that revealed no change in the overall reading and a 0.1% increase in the core data reading. The overall reading pegged forecasts and the more important core reading that excludes volatile food and energy prices fell just short of expectations. This means inflationary pressures at the producer level of the economy remained subdued, which is also good news for the bond market and mortgage rates.

 However, traders are, surprisingly, unimpressed with the data. Both of this morning’s releases gave us favorable results, at least by theory. Despite the lack of a stock rally to derail bond buying, bond prices remain flat this morning. This leads me to believe that there is some resistance at current yields and helps support my short term lock recommendations. This does not necessarily mean that I think rates are likely to move much higher. It does indicate though, that rates are unlikely to move much lower in the immediate future. In other words, the risk versus reward of floating an interest rate is tilted too far towards the risk side to make it worthwhile to float if closing on a loan in the near future.

 We also have the 30 year Bond auction today that may influence bond trading and mortgage rates this afternoon. Yesterday’s 10 year Note sale was fairly uneventful. A couple of the measurements we use to gauge investor interest showed decent results, but nothing too impressive or concerning. Therefore, we have no reason to believe today’s 30 year Bond sale will be much different. If the 1:00 PM ET results show strong investor interest in the auction, we could see bond prices rise during afternoon hours and a slight improvement to mortgage pricing shortly after. However, a lackluster demand for the securities could lead to afternoon weakness in bonds.

 Tomorrow morning also has two reports scheduled, but one is much more important than the other. The first is August's Consumer Price Index (CPI) during early morning hours. The CPI is one of the most important reports we see each month as it is considered to be a key indicator of inflation at the consumer level of the economy. As with today’s PPI report, there are two readings in the report, the overall index and the core data reading. Current forecasts show a 0.2% increase in the overall reading and a 0.2% rise in the core data reading. As with the PPI, a larger increase in the core data would likely lead to higher mortgage rates tomorrow.

 August's Industrial Production data will be posted mid morning tomorrow. 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 expecting to see little change from July’s level of output. A sizable increase could lead to higher mortgage rates, while a weaker than expected figure would indicate a still softening manufacturing sector and would be considered good news for bonds and mortgage rates. However, the CPI is the key data of the day and will likely influence mortgage pricing much more than the production data will.

 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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