My New Blog

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.

 Congress has passed the debt bill, which was signed by President Obama. This effectively ends the potential default issue in the markets, but there are still concerns and rumors about a downgrade to our credit rating in the near future. Even though a couple of the rating agencies have issued warnings recently, this is still just speculation at this time.

 In other words, I am sure we will hear about it until it either happens or the agencies release statements to the contrary. Today’s events were expected after the House passed their side of the bill. Despite news that should be considered favorable for the stock markets and was expected to lead to a relief rally, the major stock indexes went into heavy selling mode this afternoon. The Dow closed down 265 points, falling below 12,000, while the Nasdaq lost 75 points. As a result, the bond market rallied as more funds were moved into bonds as a safe-haven from the volatility. The end result was another strong day for bonds, closing up 33/32 and leaving the yield on the benchmark 10-year Treasury Note at 2.62%. As stocks dove and bonds rallied, many lenders revised their pricing lower by approximately .250 of a discount point from this morning’s rates.

 This morning’s economic data was favorable for the bond market and mortgage rates. June's Personal Income and Outlays data was posted early this morning, revealing a 0.1% increase in personal income but a 0.2% decline in spending. The income reading matched forecasts, however, the spending reading was well below expectations of a 0.1% increase. This means that consumers’ ability to spending rose slightly during June, but they were spending less than many had thought. This was good news because consumer spending makes up two-thirds of the U.S. economy. If spending is falling, it will be extremely difficult for the overall economy to continue to grow even at a modest pace. The current signs of economic weakness are favorable to bonds and mortgage rates, but it appears that little concern is being applied to the other factors in the marketplace right now. The question is just how long yields will stay this low. For the time being, enjoy the recent improvements to mortgage rates. But if still floating an interest rate, please keep a close eye on the markets and maintain contact with your mortgage professional because if traders unwind their positions, or we see solid gains in stocks, rates will spike higher rather quickly.

 Tomorrow morning has one moderately important government report scheduled for release. June's Factory Orders data will be posted at 10:00 AM ET. It helps us measure manufacturing sector strength by tracking orders for both durable and non-durable goods during the month of June. It is similar to last week's Durable Goods Orders report that tracks orders for big-ticket items only. Since a significant portion of the data was released last week, this report likely will not have as big of an impact on the markets as last week's did. Analysts are expecting to see a decline in new orders of approximately 1.0%. A larger than expected drop would be considered good news for bonds and mortgage pricing.

 Also being released tomorrow is a couple of private sector employment-related reports that have the potential to influence the markets and mortgage rates. For the most part, they are not watched closely and quite often have little influence on bond trading and mortgage pricing. However, if they show significant strength or weakness in the labor market that was unexpected, we do sometimes see the markets react since they are a reading of the employment sector.

 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.

 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.

http://activerain.com/images/linking/ARLogoProfile.gif