This email was sent to you by:
Anonymous |
|
Mortgage News Daily
|
Message: YOUR MESSAGE HERE |
Email alerts, such as this one, are a
free service provided by Mortgage News Daily. If you would like to receive an alert when important news breaks please
register to join our community.
Register with Mortgage News Daily - Registration is free and offers many benefits.
Manage your Email Alerts - Once you're registered, you can manage all MND email alerts on one page, turning subscriptions on or off with one click.
About MND:
Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.Mortgage Rates Move Higher Before Jobs Data
What a boring day in the markets!
Stocks added to yesterday's gains and bonds added to their losses. This pushed mortgage rates marginally higher. The best 30 year fixed mortgage rates are still in the 4.125% to
4.375% range for well-qualified consumers, but less lenders are
offering rates below 4.25% today. If your lender is still willing to
offer a rate below 4.25%, your closing costs are about 25bps higher
today (0.25% of your loan amount).
AQ's comments from yesterday still apply...
We're not panicking over this sell off. There has been no change in
our fundamental economic outlook, we see no new reason to be optimistic
about a rapid recovery. What we witnessed today was a technical
adjustment, an adjustment that could reverse course on Friday morning if
the Employment Situation Report fails to match economist expectations.
It also an adjustment that could be built on if the employment report
meets or surpasses forecasts. Either way, the market remains
non-committal and fluctuations are expected to occur within a range. The
overall outlook remains highly supportive of low mortgage rates.
Now that doesn't mean we're all aboard the float boat though. If
you've been offered a rate at or below 4.25% and can still execute it,
we think you should cash in your chips and lock your loan. If you've
lost this quote and are back to square one, we think you can afford to
float as long as you're not on a deadline. Your borrowing costs might
rise a few basis points in the near term, but we think you'll have
another opportunity to lock in at today's pricing, and potentially
yesterday's pricing, sometime in the next month.
Remember our advice. This is extremely important!
The "best executed" lock/float strategy comes down to finding an
originator who knows the loan market, studies underwriting guidelines,
and just plain old gets the J.O.B done. You have to let the loan
officer earn their commission. That's how you "ride the float boat" in
this environment...make sure you have a damn good skipper. Plain and
Simple
--------------------------------------------------
The Employment Situation Report will be released at 8:30am tomorrow. Economists expect the Unemployment Rate to move higher from 9.5% to 9.6% and they forecast a 100,000 person decline in Non-Farm Payrolls. A better than expected report will send mortgage rates higher while a worse than anticipated read will send consumer borrowing costs lower. The most sensitive note rates are those closest to par pricing, specifically base rates below 4.375%
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.
This email was sent to you by:
|
Mortgage News Daily
|
 |
Anonymous Anonymous |
|
Message:
YOUR MESSAGE HERE
Mortgage Rates Move Higher Before Jobs Data
What a boring day in the markets!
Stocks added to yesterday's gains and bonds added to their losses. This pushed mortgage rates marginally higher. The best 30 year fixed mortgage rates are still in the 4.125% to
4.375% range for well-qualified consumers, but less lenders are
offering rates below 4.25% today. If your lender is still willing to
offer a rate below 4.25%, your closing costs are about 25bps higher
today (0.25% of your loan amount).
AQ's comments from yesterday still apply...
We're not panicking over this sell off. There has been no change in
our fundamental economic outlook, we see no new reason to be optimistic
about a rapid recovery. What we witnessed today was a technical
adjustment, an adjustment that could reverse course on Friday morning if
the Employment Situation Report fails to match economist expectations.
It also an adjustment that could be built on if the employment report
meets or surpasses forecasts. Either way, the market remains
non-committal and fluctuations are expected to occur within a range. The
overall outlook remains highly supportive of low mortgage rates.
Now that doesn't mean we're all aboard the float boat though. If
you've been offered a rate at or below 4.25% and can still execute it,
we think you should cash in your chips and lock your loan. If you've
lost this quote and are back to square one, we think you can afford to
float as long as you're not on a deadline. Your borrowing costs might
rise a few basis points in the near term, but we think you'll have
another opportunity to lock in at today's pricing, and potentially
yesterday's pricing, sometime in the next month.
Remember our advice. This is extremely important!
The "best executed" lock/float strategy comes down to finding an
originator who knows the loan market, studies underwriting guidelines,
and just plain old gets the J.O.B done. You have to let the loan
officer earn their commission. That's how you "ride the float boat" in
this environment...make sure you have a damn good skipper. Plain and
Simple
--------------------------------------------------
The Employment Situation Report will be released at 8:30am tomorrow. Economists expect the Unemployment Rate to move higher from 9.5% to 9.6% and they forecast a 100,000 person decline in Non-Farm Payrolls. A better than expected report will send mortgage rates higher while a worse than anticipated read will send consumer borrowing costs lower. The most sensitive note rates are those closest to par pricing, specifically base rates below 4.375%
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.