Massachusetts Mortgage Advice

Massachusetts Mortgage Rate Commentary 11/9

2009-11-09T10:19:00.001-08:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened up slightly despite early stock gains. The stock markets are rallying this morning, pushing the Dow to a one year high. It is currently showing a gain of 140 points while the Nasdaq is up 50 points. The bond market is currently up 3/32, which should improve this morning’s mortgage rates by approximately .125 of a discount point.

There is no relevant economic data scheduled for release today. In fact, there is no relevant data scheduled until Friday morning. There are two important Treasury auctions this week that may influence …

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©Mortgage Commentary 2009

Massachusetts mortgage applicants: Please note that this information reflects just one opinion on the current market and should be used for informational purposes only. Today’s mortgage market is very volatile and can change very quickly. www.JeffDrew.StarMortgage.com

MA Mortgage Rate Commentary- The week ahead

2009-11-09T05:28:00.000-08:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of only two relevant economic reports but neither of them is considered to be highly important. There are two important Treasury auctions this week that may influence mortgage rates more than the minor economic data that is scheduled. It is also a holiday-shortened week with …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

Massachusetts mortgage applicants: Please note that this information reflects just one opinion on the current market and should be used for informational purposes only. Today’s mortgage market is very volatile and can change very quickly. www.JeffDrew.StarMortgage.com

Massachusetts Mortgage Rate Commentary 11/6/09

2009-11-06T09:55:00.000-08:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in positive territory following the release of weaker than expected employment figures. The stock markets are reacting relatively well to the news with the Dow up 10 points and the Nasdaq 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.

The Labor Department reported this morning that the U.S. unemployment rate spiked to 10.2% last month, reaching its highest level since April 1983. Analysts were expecting to see it move slightly to 9.9%. The number of jobs lost during the month stood at …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

Massachusetts mortgage applicants: Please note that this information reflects just one opinion on the current market and should be used for informational purposes only. Today’s mortgage market is very volatile and can change very quickly.

FANNIE MAE ANNOUNCES “DEED FOR LEASE” PROGRAM

2009-11-05T13:40:00.001-08:00

11/5/09
Fannie Mae announced a new foreclosure prevention program that is called the “Deed for Lease Program”. This program was designed to help struggling borrowers facing foreclosure to stay in their homes.
The borrower must transfer the property back to the lender through a “deed in lieu of foreclosure” and then they may be able to lease the property from the lender. This program was designed for borrowers who could not take advantage of a refinance or loan modification and are facing foreclosure.
“This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities” according to a statement from Jay Ryan, Vice President of Fannie Mae.
For a list of guidelines, qualifying criteria and answers to other frequently asked questions visit Fannie Mae’s website

Massachusetts Mortgage Rate Commentary 11-05

2009-11-05T08:02:00.000-08:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened down slightly following another stock rally. The stock markets are showing strong gains with the Dow up 182 points and the Nasdaq up 42 points. The bond market is currently down 5/32, which will likely keep this morning’s mortgage rates near yesterday’s levels.

This morning’s release of the 3rd Quarter Productivity data gave us favorable results. It showed a spike in productivity of a 9.5% increase. This was much stronger than expected, but that is good news for bonds for this type of data. Strong levels of…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

MA Mortgage Rate Commentary 11.04

2009-11-04T08:23:00.000-08:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in negative territory again as investors prepare for today’s FOMC news. Early stock gains are also contributing to this morning’s bond losses. The Dow is currently up 99 points while the Nasdaq has gained 14 points. The bond market is currently down 7/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point compared to yesterday’s morning rates.

There is…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass Mortgage Rate Commentary 11/02

2009-11-02T09:41:00.001-08:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in negative territory due to early stock strength and stronger than expected economic news. The stock markets are starting the week with sizable gains. The Dow is currently up 104 points while the Nasdaq is showing a 15 point gain. The bond market is currently down 6/32, but we will likely see little change to this morning’s mortgage rates due to strength late Friday.

Today’s only relevant economic data came from the Institute for Supply Management (ISM), who said that their manufacturing index stood at 55.7. This was higher than the 53.0 that was…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary week of 11/1/09

2009-11-02T05:46:00.000-08:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of four relevant economic reports for the markets to digest with two of those reports being much more important than the other two. In addition to the factual reports, we also have another FOMC meeting to work around this week. This leads me to believe that we will see another active week for mortgage rates.

The first report comes late tomorrow morning when the Institute for Supply Management (ISM) will post their manufacturing index. The index measures manufacturer sentiment, which is important because…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary Oct 30

2009-10-30T09:14:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in positive territory after this morning’s economic data failed to show any significant surprises and the stock markets opened with losses. Stocks are starting the next leg of their recent roller coaster ride with sizable losses. The Dow has given back over half of yesterday’s rally with a loss of 109 points so far. The Nasdaq is not fairing much better with a 20 point loss. The bond market is currently up 11/32, but I don’t believe we will see much of a change in this morning’s mortgage rates compared to yesterday’s morning rates due to weakness in bonds late yesterday.

The first of today’s three reports was the 3rd Quarter Employment Cost Index (ECI). It showed an increase of 0.4% that matched forecasts. This means that employer costs for wages and benefits rose moderately during the third quarter, but this was…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

MA Mortgage Rate Commentary Oct 29

2009-10-29T09:01:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in negative territory after today’s important economic data gave us stronger than expected results. The stock markets are showing strength with the Dow up 86 points and the Nasdaq up 24 points. The bond market is currently down 15/32, but we will probably see little change in this morning’s mortgage rates due to strength in bonds late yesterday.

Today’s big news was the release of the preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) that is …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

MA Mortgage Rate Commentary Oct 28

2009-10-28T08:53:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in positive territory again after this morning’s only economic report showed no surprises. A negative open for stocks is also helping bonds during early trading. The Dow and Nasdaq are both showing losses of 28 points. The bond market is currently up 10/32, which should improve this morning’s mortgage rates by approximately .250 - of a discount point.

The Commerce Department released September’s Durable Goods Orders this morning, announcing an increase of 1.0% in new orders for big-ticket items. This…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary Oct 27

2009-10-27T09:37:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened in positive territory following the release of a much weaker than expected consumer confidence reading. The stock markets are mixed with the Dow up 57 points and the Nasdaq down 6 points. The bond market is currently up 14/32, which will likely improve this morning’s mortgage rates by approximately .250 - of a discount point.

The Conference Board said that their Consumer Confidence Index (CCI) for October fell to 47.7. This was much weaker than the 53.5 that was expected and indicates that consumers are less optimistic about their own financial situations than many had thought. That is favorable news for…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass. Mortgage Rate Commentary 10/23

2009-10-23T09:52:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in negative territory again despite stock weakness during early trading. The stock markets are still unable to hold recent gains with the Dow down 90 points and again falling below the 10,000 benchmark. The Nasdaq is currently down 4 points. The bond market is down 13/32, which will likely push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point.

Today’s only relevant economic news came from the National Association of Realtors who reported that…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

MA Mortgage Rate Commentary 10-22-09

2009-10-22T09:41:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in negative territory again as traders still wait for direction on the stock markets. Stocks are mixed with the Dow up 44 points and the Nasdaq down 8 points. The bond market is currently down 6/32, but we will likely see an improvement in mortgage rates of approximately .250 of a discount point due to strength late yesterday.

Neither of today’s economic releases were considered to be highly important. The Labor Department gave us favorable news with an announcement that 531,000 new claims for unemployment benefits were filed last week. This …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass. Mortgage Rate Commentary 10.20.2009

2009-10-20T10:04:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened in positive territory following weaker than expected economic reports and early stock losses. The stock markets are negative ground with the Dow down 52 points and the Nasdaq down 14 points. The bond market is currently up 16/32, which will likely improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.

The Labor Department reported this morning that September’s Producer Price Index (PPI) fell 0.6% while the core data fell 0.1%. Both of these readings were weaker than expected, indicating that inflationary pressures at the producer level of the…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

This weeks MA Mortgage Rate Commentary

2009-10-19T05:10:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of five economic reports for the markets to digest. Only one of these reports is considered to be highly important to mortgage rates, but this by no means leads me to believe we will have an uneventful week. This will be an extremely busy week for corporate earnings, which usually translates into stock volatility. The lack of important economic data on this week’s calendar makes it more likely that any significant swings in stock prices will influence bond trading and mortgage rates.

There is nothing of importance scheduled to be posted tomorrow morning. We will get a couple of important earnings releases including Texas Instruments and Apple, Inc, but they are being announced after the markets close tomorrow. This means that any reaction in the markets won’t come until Tuesday’s trading. I am thinking that tomorrow…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass Mortgage Rate Commentary 10/16

2009-10-16T09:31:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in positive territory following a weak open in stocks. The stock markets are in selling mode during early trading with the Dow down 110 points and the Nasdaq down 28 points. Weaker than expected earnings reports from a couple of major names is the main reason for the early selling in stocks. The bond market is currently up 9/32, but we will likely still see an increase in this morning’s mortgage rates of approximately .250 of a discount point due to weakness late yesterday.

There were two reports released this morning, but neither can be considered highly important to the markets or mortgage rates. September’s Industrial Production data was the …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary Oct 15

2009-10-15T08:34:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market initially opened well in negative territory but has since rebounded after stocks opened in negative ground. The Dow is currently down 28 points while the Nasdaq has fallen 12 points. While those may be minor losses, the concern is the fact that the Dow has slipped below the 10,000 benchmark that we heard so much about yesterday. Investors’ concerns that stocks may not be able to hold recent gains has helped boost bond prices during early morning trading. The result is the bond market currently up 3/32, but I am expecting to see an increase in this morning’s mortgage rates of approximately .375 of a discount point compared to yesterday’s morning rates.

The Labor Department reported this morning that September’s Consumer Price Index (CPI) rose 0.2% and that the core data reading rose 0.2%. The overall…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass. Mortgage Rate Commentary 10-14-2009

2009-10-14T08:35:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in negative after this morning’s economic data showed stronger than expected readings. The stock markets are in positive ground with the Dow up 98 points and the Nasdaq up 20 points. The bond market is currently down 6/32, but I am expecting to see a slight improvement in this morning’s mortgage pricing due to strength in bonds late yesterday.

The Commerce Department posted September’s Retail Sales figures early this morning, announcing a 1.5% decline in sales from August’s level. This was a smaller than expected drop, indicating that consumers spent more than many had thought. Even if more volatile auto-transactions are excluded, sales exceeded expectations. This is bad news for bonds and …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 10-13-09

2009-10-13T08:55:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened well in positive territory following last week’s sell-off. The stock markets are helping bonds by showing early losses with the Dow down 38 points and the Nasdaq down 6 points. The bond market is currently up 21/32, but we likely will see little change in this morning’s mortgage rates due to weakness late Friday.

There is no relevant economic news scheduled for release today. The bond market was closed yesterday in observance of the Columbus Day holiday, so today’s trading picks up from Friday’s levels. Last week closed on a significant sell-off so this morning’s gains in bonds could be investors finalizing positions. Some traders feel last week’s sell-off was…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

MA Mortgage Rate Commentary the week ahead

2009-10-13T02:16:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened down sharply as yesterday’s afternoon selling continues into this morning. The stock markets are showing gains with the Dow up 43 points and the Nasdaq up 11 points. The bond market is currently down 30/32, which with yesterday’s afternoon weakness will likely push this morning’s mortgage rates higher by approximately .500 - .625 of a discount point over yesterday’s morning rates.

Today’s only economic data was August’s Goods and Services Trade Balance report. It revealed a $30.7 billion trade deficit, exceeding forecasts. However, this news is relatively inconsequential to the markets and has had little impact on today’s…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

MA Mortgage Rate Commentary

2009-10-09T09:05:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened down sharply as yesterday’s afternoon selling continues into this morning. The stock markets are showing gains with the Dow up 43 points and the Nasdaq up 11 points. The bond market is currently down 30/32, which with yesterday’s afternoon weakness will likely push this morning’s mortgage rates higher by approximately .500 - .625 of a discount point over yesterday’s morning rates.

Today’s only economic data was August’s Goods and Services Trade Balance report. It revealed a $30.7 billion trade deficit, exceeding forecasts. However, this…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 10.08

2009-10-08T11:20:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened flat despite early stock gains and stronger than expected unemployment data. Stocks are rallying with the Dow up 80 points and the Nasdaq up 25 points. The bond market is nearly unchanged from yesterday’s close, but we will likely see an improvement in this morning’s mortgage rates of approximately .125 - .250 of a discount point due to strength late yesterday.

The Labor Department reported this morning that 521,000 new claims for unemployment benefits were filed last week. This was lower than expected and the lowest total in approximately nine months. This is considered bad…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass Mortgage Rate Commentary 10.07.09

2009-10-07T08:18:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in positive territory despite a lack of factual economic data being posted today. The stock markets are showing minor gains after a strong two-day rally. The Dow is currently down 24 points while the Nasdaq has slipped 2 points. The bond market is currently up 15/32, but I don’t think we will see much of a change in this morning’s mortgage rates as lenders wait for today’s debt sale before making any adjustments.

There is no relevant economic data scheduled for release today, but we do have the 10-year Treasury Note auction to contend with. This sale will give us …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 10.06.09

2009-10-06T09:50:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened in negative territory with the stock markets in a sizable rally. The Dow is currently up 150 points while the Nasdaq has gained 36 points. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point.

There is no specific report or reason for stocks rallying this morning. Improving global economic conditions can be considered a contributing factor, but it is more of a situation where the general sentiment in the stock markets is favorable. This morning’s bond weakness is partly a result of…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 10.05.09

2009-10-05T10:26:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in positive territory, following the direction of stocks. The stock markets are showing gains of 68 points and 16 points for the Dow and Nasdaq respectively. The bond market is currently up 6/32, but I don’t believe we will see much of a change in this morning’s mortgage rates.

This week brings us only one monthly economic report for the markets to digest and it is not considered to be of high importance. This means that the week will be left mostly up to the stock markets and other influences since there is a lack of factual data for bonds to trade on. In addition to the one report, we also have…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary for the week ahead

2009-10-05T03:29:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us only one monthly economic report for the markets to digest and it is not considered to be of high importance. This means that the week will be left mostly up to the stock markets and other influences since there is a lack of factual data for bonds to trade on. In addition to the one report, we also have two relevant Treasury auctions that can also cause movement in rates if demand for them is particularly strong or weak.

The first relevant event of the week is Wednesday’s 10-year Treasury Note auction. This sale will give us an important measure of investor interest in longer-term U.S. debt, particularly from international buyers. If there is a strong demand in the sale, we should see the broader bond market rally and mortgage rates move lower. However, a lackluster interest in the sale would …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

MA mortgage rate commentary 10/02

2009-10-02T10:29:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened relatively flat despite weaker than expected economic data. The stock markets initially opened well in negative territory but have since recovered a good portion of those losses. The Dow is currently down 12 points and the Nasdaq is down 5 points. The bond market is down 2/32, but we still should see an improvement in this morning’s mortgage rates of approximately .250 of a discount point due to strength late yesterday.

The Labor Department gave us today’s big news with the release of September’s Employment report. They reported that the U.S. unemployment rate stood at 9.8% last month, as expected. However, the number of lost jobs was 263,000, exceeding forecasts of 180,000. The third important component of the report- average hourly earnings, did not rise as much as thought. Overall, this data is …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 10.01.09

2009-10-01T10:46:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in positive following early stock losses and mixed economic news. The stocks markets are in selling mode this morning with the Dow down 153 points and the Nasdaq down 52 points. The bond market is currently up 22/32, which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.

The first of today’s two important economic reports was August’s Personal Income and Outlays that revealed a 0.2% increase in personal income and a 1.3% rise in spending. Both of these readings were higher than expected, indicating that consumers had more money to spend than thought and were spending it. This is bad news for bonds and mortgage rates because it hints that consumer spending will …

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©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass Mortgage Rate Commentary 09.30.09

2009-09-30T09:55:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened flat despite early stock weakness. The stocks markets are posting noticeable losses with the Dow down 83 points and the Nasdaq down 15 points. The bond market is nearly unchanged from yesterday’s closing level, but we should still see an improvement in this morning’s mortgage rates of approximately .250 of a discount point due to strength late yesterday.

Today’s only relevant economic data was the final revision to the 2nd Quarter Gross Domestic Product (GDP). It showed a revised reading of a 0.7% decline that was stronger than expected. The last revision revealed a 1.0% drop in GDP, meaning the economy was stronger last quarter than many had thought. Theoretically, this is negative news for bonds because stronger economic activity makes long-term securities such as mortgage-related bonds less attractive to investors. However, this data is so aged now that it …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09/29/09

2009-09-29T09:01:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market initially opened well in negative territory but has since recovered a good portion of those losses following a much weaker than expected consumer confidence reading. The stocks markets are posting losses with the Dow down 27 points and the Nasdaq down 9 points. The bond market is currently down 2/32, but this is well off earlier lows. However, we will still likely see an improvement to this morning’s mortgage rates of approximately .125 of a discount point due to strength yesterday.

The Conference Board, who is a New York based business research group, reported late this morning that their Consumer Confidence Index (CCI) for September stood at 53.1. That was a decline from August’s reading and well below forecasts of a 57.0 reading, indicating that consumers were much less optimistic about their own financial situations than many had thought. This can be considered good news for bonds and mortgage rates because it means that consumers are less likely to make a large purchase in the near …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.28.09

2009-09-28T08:25:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened up slightly despite strong stock gains. The stock markets are rallying with the Dow up 126 points while the Nasdaq has gained 41 points. The bond market is currently up 4/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

There is no relevant economic news scheduled for release today. Tomorrow starts this week’s fairly busy calendar with the first release September’s Consumer Confidence Index (CCI) at 10:00 AM ET. This Conference Board index gives us a measurement of consumer willingness to spend. It is expected to show an increase from last month’s reading, indicating that consumers are more optimistic about their own financial situations than last month and more likely to make large purchases in the near future. This is bad news for the bond market and mortgage rates because consumer spending fuels economic growth. Analysts are calling for a reading of …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary week of 9-27

2009-09-28T02:52:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of six relevant economic reports for the bond market to digest. There is nothing of importance scheduled for release tomorrow, so look for the stock markets to influence bond trading and possibly mortgage rates. I would not be surprised to see a relatively calm day as traders prepare for this week’s data, some of which is considered to be extremely important.

The first release of the week is September’s Consumer Confidence Index (CCI) late Tuesday morning. This Conference Board index will be posted at 10:00 AM and gives us a measurement of consumer willingness to spend. It is expected to show an increase from last month’s reading, indicating that consumers are more optimistic about their own financial situations than last month and more likely to make large purchases in the near future. This is bad news for the bond market and mortgage rates because consumer spending fuels economic growth. Analysts are calling for a reading of approximately 57.0, up from August’s 54.1. If we see a larger than expected increase…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09/25/09

2009-09-25T09:01:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened flat following the release of mixed economic new. The stock markets are showing minor losses with the Dow down 14 points and the Nasdaq down 10 points. The bond market is currently up 2/32, which will likely improve this morning’s mortgage rates by approximately .125 due to strength late yesterday after news that the 7-year Note sale went pretty well.

There were three reports posted this morning. Results of two of them can be considered negative for bonds and mortgage rates while one is good news. Since the most important one gave us much weaker than expected results, we have not seen much selling in bonds, preventing an increase…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 2009/09/24

2009-09-24T09:39:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in positive territory following early stock weakness and news of an unexpected decline in home sales. The stock markets are showing losses with the Dow down 38 points and the Nasdaq down 25 points. The bond market is currently up 9/32, which will likely improve this morning’s mortgage rates by approximately .125 - .250 of a discount point compared to yesterday’s morning rates.

The Labor Department announced this morning that 530,000 new claims for unemployment benefits were filed last week. This was much lower than the 550,000 that was expected, meaning the employment sector was stronger than thought last week. That is bad news for bonds and mortgage rates, but since this data tracks only…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09/23/2009

2009-09-23T08:30:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market opened slightly in negative territory as traders prepare for today’s Treasury auction and the FOMC post-meeting statement. The stock markets are showing small losses with the Dow down 19 points and the Nasdaq down 2 points. The bond market is down 2/32, which will likely push this morning’s mortgage rates higher by .125 - .250 of a discount point.

I am expecting to see a relative calm morning in trading and mortgage rates but would not be surprised at all to see a revision to mortgage pricing later today. This morning’s weakness in bonds is common ahead of important Treasury auctions. If the sales go well, we usually see those losses recovered during …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.22.2009

2009-09-22T08:46:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened up slightly despite no relevant economic news on tap today. The stock markets showing minor gains with the Dow up 27 points and the Nasdaq up 6 points. The bond market is currently up 4/32, but we will again likely see little change in this morning’s mortgage rates as traders and lenders wait for tomorrow’s events to take place before making any sizable changes.

There are no significant events or relevant economic reports scheduled for today. Investors seem to be preparing for tomorrow’s events and will likely keep bond prices near current levels until then. This means I am not expecting to see any noticeable changes to …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09-21-2009

2009-09-21T09:41:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in positive territory after this morning’s sole economic report gave us a slightly lower than expected reading. The stock markets are mixed with the Dow down 30 points and the Nasdaq up 6 points. The bond market is currently up 12/32, but we will likely see little change in this morning’s mortgage rates.

The Conference Board said late this morning that its Leading Economic Indicators (LEI) for August rose 0.6%, meaning that it is predicting moderate to rapid growth in economic activity over the next few months, but at a slightly slower pace than analysts had thought. This is basically good news for bonds, but an upward revision to July’s reading offset this news. Besides, this data is considered to be only moderately important and a wide variance would have been needed to really influence trading and mortgage rates.

The rest of the week brings us the release of four more relevant economic reports in addition to another FOMC meeting and two important Treasury auctions. None of the factual reports are considered to be highly important. In fact …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary week of 9-20-2009

2009-09-21T04:34:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of five relevant economic reports in addition to another FOMC meeting and two important Treasury auctions. None of the factual reports are considered to be highly important. In fact, most of the economic news is considered to be only moderately important. This should help limit the possibility of significant changes to mortgage rates most days this week.

Unlike many Mondays, there is relevant data being posted tomorrow. The Conference Board will release its Leading Economic Indicators (LEI) for August late tomorrow morning. This index attempts to measure economic activity over the next three to six months. It is expected to show a 0.7% rise, meaning that it is predicting a sizable increase in economic activity over the next several months. A larger than expected reading would be considered bad news for bonds and could lead to a minor increase in mortgage rates tomorrow.

There is nothing of importance scheduled for release Tuesday, but the first of this week’s two important Treasury sales will take place Wednesday and the Fed’s two-day FOMC meeting will adjourn Wednesday afternoon. The Treasury will sell 5-year Notes Wednesday and 7-year Notes Thursday. If investor demand in these sales is strong, particularly from international buyers, the broader bond market should move higher pushing …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09/18/09

2009-09-18T10:35:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in negative territory with little to drive trading. The stock markets are showing minor gains with the Dow up 36 points and the Nasdaq up 3 points. The bond market is currently down 7/32, but we will likely see little change in this morning’s mortgage rates due to strength late yesterday.

There is no relevant economic news scheduled for release today. Look for the stock markets to be the biggest influence on any swings in bond trading or mortgage rates this afternoon. As long as the stock markets remain fairly calm, mortgage rates will likely follow suit. However, this may be difficult because today is known as Quadruple Witching day in the stock markets. This is where stock index futures and options, stock options and individual stock futures all expire. As those options are executed throughout the day, it is common to see wide fluctuations in stocks. If the major stock indexes show sizable losses, bonds may benefit. If the indexes move higher, extending their recent rally, we could see changes to…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.17.09

2009-09-17T09:23:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in positive territory, following suit with stocks. The stock markets are continuing yesterday’s positive tone, but to a much lesser scale. The Dow is currently up 23 points while the Nasdaq has gained 4 points. The bond market is currently up 8/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.

Neither of today’s economic releases are considered to be of high importance to the markets and have not had much influence on this morning’s mortgage rates. The Labor Department reported that 545,000 new claims for unemployment benefits were filed last week. This was lower than expected and can be considered negative news for bonds. However, the short period that this report tracks usually means it does not heavily influence trading or mortgage pricing.

August’s Housing Starts report was also posted this morning, showing an increase in starts of new homes from July to August. This data helps us measure housing sector strength, but is…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09-16-09

2009-09-16T10:14:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market opened in positive territory following the release of this morning’s key inflation data that showed no significant surprises, but has since given back those gains. The stock markets are in positive ground with the Dow up 40 points and the Nasdaq up 11 points. The bond market is currently down 2/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

There were two reports posted this morning. The first was August’s Consumer Price Index (CPI) that revealed a 0.4% increase in the overall reading and a 0.1% rise in the core data. The increase in the overall reading was slightly higher than forecasts, but the more important core data reading that excludes volatile food and energy prices matched expectations. This means that prices at the consumer level of the economy rose modestly last month. That is good news for bond prices and mortgage rates because rapid increases in inflation makes long-term securities such as mortgage-related bonds less attractive to investors.
The end result is almost always …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage rate Commentary 09-15-2009

2009-09-15T09:31:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market initially opened well in negative territory after this morning’s economic data revealed stronger than expected results but has since recovered a good portion of those losses. The stock markets are showing minor gains with the Dow up 4 points and the Nasdaq up 6 points. The bond market is currently down 3/32, but well above earlier levels. This will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

The Commerce Department announced this morning that sales at retail level establishments rose 2.7% last month, greatly exceeding analysts’ forecasts of a 1.9% increase. Even when volatile auto transactions are excluded, sales were well above forecasts. This means that consumers spent much more last month than many had thought. That is bad news for bonds and mortgage rates because consumer spending makes up…

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.14.09

2009-09-14T08:16:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in negative territory despite a flat morning in stocks and no economic data on today’s calendar. The stock markets are calm with the Dow down 8 points and the Nasdaq nearly unchanged from Friday’s close. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

This week brings us the release of five relevant economic reports that may influence mortgage rates, but none of them are scheduled for release today. A couple of the reports are considered to be highly important to the financial and mortgage markets, meaning that we may see significant changes to rates this week. There is a very good chance of seeing noticeable changes in rates at least one day, if …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary week of 9.13.09

2009-09-14T05:44:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of five relevant economic reports that may influence mortgage rates. A couple of these reports are considered to be highly important to the financial and mortgage markets, meaning that we may see significant changes to rates this week. There is a very good chance of seeing noticeable changes in rates at least one day, if not several days this week. There is no relevant news scheduled to be posted tomorrow, so look for the stock markets to be the biggest force behind bond trading and changes to mortgage rates until we get to the data releases.

There are two highly important reports scheduled to be posted early Tuesday morning. The first is the release of August’s Retail Sales report. It will give us a measurement of consumer spending, which is very important to the markets because consumer spending makes up two-thirds of the U.S. economy. Current forecasts are calling for a 1.9% increase in sales. The sizable jump is expected to come from auto sales that were fueled by the Cash For Clunkers program. Analysts are calling for a 0.4% rise in sales if auto sales are excluded. A larger than expected increase would be considered bad news for bonds and likely lead to an …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09/11/2009

2009-09-11T10:46:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in positive territory despite stronger than expected economic news. The stock markets are showing minor losses with the Dow down 10 points and the Nasdaq down 1 point. The bond market is currently up 17/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

The University of Michigan posted their Index of Consumer Sentiment late this morning, announcing a reading of 70.2. This was a sizable increase from August’s final reading and higher than what analysts had expected. This means that consumers are more optimistic about their own financial situations than many had thought. That can be considered bad news for bonds and mortgage rates because it hints that consumers are more apt to make large purchases in the near future. However, it appears the data…..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.10.09

2009-09-10T10:54:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in positive territory despite early stock gains and mixed economic news. The stock markets are in positive territory still with the Dow up 13 points and the Nasdaq up 7 points. The bond market is currently up 14/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.

July’s Goods and Services Trade Balance was this morning’s only monthly economic news released. It showed the trade deficit stood at $32.0 billion in July, which was much higher than expected. However, this news is not usually very influential towards mortgage rates, so its impact has been minimal.

The Labor Department gave us last week’s unemployment figures, announcing that 550,000 new claims for benefits were filed last week. This was lower than expected and can be considered negative towards bonds and mortgage rates. But this data also is not considered to be highly important to mortgage rates because it tracks …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.09.2009

2009-09-09T12:37:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in negative territory following early stock gains. The stock markets are extending yesterday’s gains with the Dow up 60 points and the Nasdaq up 24 points. The bond market is currently down 8/32, but we will likely see little change in this morning’s mortgage rates.

There is no relevant economic news scheduled for release today. The first release of the week comes tomorrow afternoon. The Federal Reserve will release its Beige Book report at 2:00 PM ET tomorrow. This report details current economic conditions in the U.S. by region. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed’s next move. Most likely though, it will be a non-event and will not lead to a noticeable change in mortgage rates.

Also tomorrow is the 10-year Treasury Note auction, which will be followed by the 30-year Bond auction Thursday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. But, if the sales are met with a decent demand from investors, those losses are normally recovered after the results are announced. The results will be posted at 1:00 pm ET each day. If demand was strong, particularly from international investors, we should see mortgage rates improve during afternoon trading.....

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.08.09

2009-09-08T10:09:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened flat after the holiday weekend with no relevant economic data scheduled for release today and only minor gains in the stock markets. The major stock indexes have opened the week relatively calm with the Dow up 32 points and the Nasdaq up 7 points. The bond market is nearly unchanged from Friday’s close, but we will still likely see an increase of approximately .125 of a discount point over Friday’s morning rates.

This week brings us the release of only three pieces of economic data, but none of them are considered to be highly important. In addition to the economic releases, we also have two Treasury auctions that may play a role in this week’s mortgage pricing.

The first release of the week comes Wednesday afternoon. The Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by region. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises, we may see movement in the markets and mortgage pricing as analysts adjust their theories on …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary week of 9-6-2009

2009-09-07T04:16:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of only three pieces of economic data, but none of them are considered to be highly important. In addition to the economic releases, we also have two Treasury auctions that may play a role in this week’s mortgage pricing. The markets are closed tomorrow in observance of the Labor Day holiday, meaning mortgage lenders will follow suit.

The first release of the week comes Wednesday afternoon. The Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by region. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed’s next move. Most likely though, it will be a non-event and will not lead to a noticeable change in mortgage rates. …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09-04-09

2009-09-04T10:18:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday's bond market has opened in negative territory after today's major employment news did not reveal significantly weaker than expected readings. The stock markets have reacted mildly to the news though with the Dow up just 30 points and the Nasdaq up 8 points. The bond market is currently down 12/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point over yesterday’s morning rates.

The Labor Department reported this morning that the unemployment rate moved from 9.4% in July to 9.7% last month. This was higher than the 9.5% rate that was expected, which can be considered good news for bonds and mortgage rates. However, only 216,000 jobs were lost during the month when analysts were expecting to see a slightly larger decline. A revision to July's job loss number showed that 276,000 jobs were lost compared to the 247,000 announced last month. But this worked against bonds today because the 216,000 now shows a larger improvement from July to August than what was predicted.

Also hurting bonds this morning is the average hourly earnings reading in the report that revealed a 0.3% rise in earnings. This was much higher than the 0.1% that was expected, meaning earnings rose more than …..

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©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09-03-2009

2009-09-03T09:49:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in negative territory after the stock markets opened with minor gains and there was no important economic data on the calendar to influence trading. The Dow is currently up 25 points while the Nasdaq has gained 5 points. The bond market is currently down 4/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

The only semi-relevant economic data posted today was last week’s unemployment figures from the Labor Department and the ISM services index. Many traders are waiting for tomorrow’s major news before making adjustments to their portfolios. The Labor Department reported this morning that 570,000 new claims for unemployment benefits were filed last week and the ISM index revealed a reading of 48.4. Both of these were very close to expectations but neither are considered to be of much importance to the markets. Therefore, the bond market has been mostly influenced by stock trading and preparation for tomorrow’s news.

Yesterday’s afternoon release of the FOMC minutes didn’t have much of an impact on trading or mortgage rates. They revealed that the Fed is still optimistic about an economic recovery, but at a slow pace. They are still concerned about the vulnerability of …

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09.02.09

2009-09-02T09:14:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in positive territory following early volatility in stocks and favorable economic data. The stock markets have fluctuated between positive and negative ground this morning, but the Dow and Nasdaq are both currently up a couple of points. The bond market is up 4/32, which with yesterday’s late strength should improve this morning’s mortgage rates by approximately .250 of a discount point compared to yesterday’s morning rates.

The 2nd Quarter Productivity revision was posted early this morning, showing an annual rate of 6.6%. This was a little higher than expected, which is good news for bonds and mortgage rates because strong levels of worker output allows the economy to grow without inflation concerns.

The second relevant report was July’s Factory Orders data. It showed a smaller than expected increase in new orders. The 1.3% increase instead of the forecasted 1.5% indicates that manufacturing activity was not as strong as expected. This…..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 09/01/09

2009-09-01T08:48:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market is in negative territory after this morning’s primary economic release showed a much stronger than expected reading. The stock markets are showing losses with the Dow down 88 points and the Nasdaq down 12 points. The bond market is currently down 5/32, but I don’t think we will see much of a change in this morning’s mortgage rates due to strength late yesterday.

Today’s big news came from the Institute for Supply Management (ISM), who posted their manufacturing index for August late this morning. They reported a reading of 52.9 that was stronger than analysts had expected, indicating manufacturer sentiment is growing. This was the first time this index was above 50 since January 2008. That is considered bad news for bonds and mortgage rates because it points towards a strengthening economy. However, a note in the report says that manufacturers are not planning on hiring new workers anytime soon. This helps support the theory that the job market will remain weak for some time, likely preventing a rapid economic recovery. The result was a minimal impact on this morning’s bond trading and mortgage rates.

Tomorrow brings us three events for the markets to digest. The first is the revision to the 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show a downward change from the previous estimate of a 6.4% annual pace. Forecasts are currently calling for …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/31/09

2009-08-31T10:14:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in positive territory following early stock weakness. The stock markets are ending the month on a negative note with the Dow down 90 points and the Nasdaq down 25 points. The bond market is currently up 6/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.

There is no relevant data scheduled for release today, so look for the stock markets to directly affect bond trading and mortgage rates the rest of the day. If the major stock indexes fall further, we may see bond prices rise more and mortgage rates revise lower this afternoon.

The first piece of data comes tomorrow morning with the release of the Institute for Supply Management’s (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show an increase from last month’s reading of 48.9. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected increase in the index will probably cause …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass Mortgage Rate Commentary week of 8/30/09

2009-08-31T02:53:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

There are four relevant economic reports scheduled for release this week in addition to the minutes from the most recent Fed monetary policy meeting. There is no relevant data scheduled for release tomorrow, so look for the stock markets to directly affect bond trading and mortgage rates.

The first piece of data comes Tuesday morning with the release of the Institute for Supply Management’s (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show an increase from last month’s reading of 48.9. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected increase in the index will probably cause a rally in the stock markets and lead to mortgage rates rising Tuesday, while a reading below 50 should lead to lower rates. Analysts are expecting a reading of 50.2, which would be the first reading above 50.0 since January 2008 and indicate that the manufacturing sector is growing.

The second report of the week is the revision to the 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show a …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/28/09

2009-08-28T10:04:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market opened in negative territory following early gains in stocks, but the markets have since swapped positions with stocks in negative ground and the bond market up slightly. The Dow is currently down 40 points while the Nasdaq is nearly unchanged from yesterday’s close. The bond market is now up 2/32, but we will likely still see an increase in this morning’s mortgage rates of approximately .125 of a discount point due to weakness late yesterday.

Today’s economic news was fairly uneventful. July’s Personal Income and Outlays report showed no change in income and a 0.2% increase in spending. The income reading was slightly lower than forecasts and can be considered favorable for bonds, but …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/27/2009

2009-08-27T10:09:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened flat again as investors seem to be unmoved by recent economic data. The stock markets are showing losses with the Dow down 30 points and the Nasdaq down 19 points. The bond market is currently down 5/32, but I am not expecting to see much of a change in this morning’s mortgage rates.

Today’s release of the 2nd Quarter Gross Domestic Product (GDP) revision revealed no change to the previous estimate of down 1.0%. Analysts were expecting to see a downward revision to a decline of 1.4%, meaning that the economy was not as weak as some had thought. While this is considered negative news for bonds since it was thought the economy had slowed at a quicker pace than it actually did, the data has not influenced mortgage rates this morning. It could be that this is relatively old news at this point. There is a final revision being released next month, but it often has little impact on bond trading or mortgage rates.

The Labor Department said that 570,000 new claims for unemployment benefits were filed last week. This was close to forecasts and has also had little impact on bond trading or mortgage rates this morning.

Yesterday’s 5-year Treasury Note auction went okay. It was met with an average demand from investors and the other measurements of success were indicated the same. It was not an overly strong auction, but it also didn’t qualify as a poor sale either. Today’s 7-year Note sale is also of interest to mortgage shoppers. The results of it will be posted at 1:00 PM ET. If it was met with a good demand from investors, we could see …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08-26-2009

2009-08-27T03:16:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened flat despite stronger than expected economic news. The stock markets are showing minor gains with the Dow up 30 points and the Nasdaq up 6 points. The bond market is nearly unchanged from yesterday’s closing level, but we will still likely see a slight improvement in this morning’s mortgage rates due to strength in bonds late yesterday.

The Commerce Department gave us July’s Durable Goods Orders report, showing a 4.9% increase in orders for big-ticket products. This was larger than the 3.2% that was expected and an upward revision to June’s orders indicates that the manufacturing sector may be stronger than many had expected. This is bad news for bonds and mortgage rates because …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08-24-2009

2009-08-24T08:19:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in negative territory following early stock gains. The stock markets are kicking the week off by continuing Friday’s rally. The Dow is currently up 73 points while the Nasdaq has gained 13 points. The bond market is down 5/32, which with Friday’s afternoon weakness should push this morning’s mortgage rates higher by approximately .375 of a discount point compared to Friday’s morning rates.

There is no relevant economic news scheduled for release today. As expected, the stock markets are having the most influence on bond trading and mortgage rates so far. If the major stock indexes continue to rise, we may see bond prices fall further today, possibly leading to upward revisions in mortgage rates this afternoon.

The Conference Board will post this week’s first relevant economic report late tomorrow morning with the release of August’s Consumer Confidence Index (CCI). This index measures consumer sentiment about their own financial situations, giving us a measurement of willingness to spend. That is important because …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary week of 8-23-2009

2009-08-24T03:10:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of six relevant economic releases for the bond market to watch in addition to two important Treasury auctions. There is no relevant data or news expected to be released tomorrow, so look for the stock markets to heavily influence bond trading and mortgage rates until we get to the factual economic reports.

The Conference Board will post this week’s first relevant economic report late Tuesday morning with the release of August’s Consumer Confidence Index (CCI). This index measures consumer sentiment about their own financial situations, giving us a measurement of willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. A decline would indicate that consumers may not be making large purchases in the immediate future. That sign of economic weakness should drive bond prices higher, leading to lower mortgage rates Tuesday. It is expected to show a reading of 48.0, which would be an increase from July’s 46.6.

The Commerce Department will post July’s Durable Goods Orders Wednesday morning, giving us an important measure of manufacturing sector strength. This data tracks orders at U.S. factories for big-ticket items, or products that are expected to last three or more years. A much weaker reading than the expected 3.2% rise that is expected would indicate that the manufacturing sector is not as strong as thought. This would be good news for bonds and should lead to lower mortgage rates.

Also scheduled for release Wednesday is July’s New Home Sales data. This report is the least important release of the week. It will give us an indication of housing sector strength and mortgage credit demand, but only tracks approximately 15% of all home sales. It usually doesn’t have a major impact on bond prices or mortgage rates unless it varies greatly from forecasts.

Thursday’s only data is the first revision to the 2nd Quarter Gross Domestic Product (GDP). Last month’s preliminary reading revealed that the economy declined at an annual rate of 1.0%. A larger than expected downward revision should help lower mortgage rates Thursday, especially if the inflation portion of the release does not get revised higher. Current forecasts are calling for a revised reading of down 1.4%. There will be a final revision issued next month, but it probably will have little impact on mortgage rates.

Friday is a multi-release day with the release of July’s Personal Income and Outlays report and the University of Michigan Index of Consumer Sentiment. The income and spending data measures consumer ability to spend and current spending habits. It is expected to show an increase of 0.1% in income and a 0.2% increase in spending. Weaker than expected numbers would be good news for the bond market and mortgage rates.

August’s revision to the University of Michigan’s Index of Consumer Sentiment is also due Friday morning. It gives us a measurement of consumer willingness to spend. It is expected to show an upward revision from August’s preliminary reading of 61.7. If it revises lower, consumers were less confident about their personal financial situations than previously thought. This would be good news for the bond market and mortgage rates.

Also worth mentioning are a couple of Treasury auctions that may affect bond trading and mortgage rates this week. The two most important are Wednesday’s 5-year Note and Thursday’s 7-year Note sales. Results of this week’s auctions will be posted 1:00 PM ET each day. If investor interest is strong in the auctions, we can expect the broader bond market to rally and mortgage rates to move lower. However, lackluster demand could lead to bond selling and higher mortgage rates Wednesday and Thursday afternoons.

Overall, we will likely see the most activity in rates Tuesday morning, but Wednesday and Thursday are also important. If we manage to get weaker than expected results in the key reports and the auctions go well, we should see mortgage rates close the week lower than tomorrow’s opening levels. But stronger than expected results in the economic reports and disappointing results in the Treasury sales will most likely lead to rates moving higher this week.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/21/2009

2009-08-21T08:01:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened down sharply following stronger than expected housing news and a strong opening for stocks. The Dow is currently up 123 points while the Nasdaq has gained 23 points. The bond market is currently down 16/32, but I am not expecting to see much of a change in this morning’s mortgage rates due to strength in bonds late yesterday. This morning’s losses should simply erase yesterday’s afternoon gains, keeping mortgage pricing near yesterday’s morning levels.

The National Association of Realtors reported this morning that home resales rose 7.2% last month. This was nearly triple the increase in sales that was expected, indicating that the housing sector may be strengthening at a quicker pace than many had thought. While that is good news for homeowners, it is bad news for bonds because a strengthening housing sector makes a broader economic recovery more viable. Since bonds are more attractive to investors in a weaker economy environment, a strengthening economy can lead to …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Mass Mortgage Rate Commentary 08.21.2009

2009-08-20T10:07:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened fairly flat following minor gains in stocks and no major surprises in today’s economic data. The Dow is currently up 30 points while the Nasdaq has gained 11 points. The bond market is currently down 2/32, but I don’t believe we will see much of a change in this morning’s mortgage rates.

The Labor Department gave us weekly unemployment figures early this morning. They reported that 576,000 new claims for unemployment benefits were filed last week. This was more than what analysts were expecting to see, but this data is not considered to be highly important. Therefore, it has had a minimal impact on bond trading and mortgage rates this morning.

July’s Leading Economic Indicators (LEI) was released by the Conference Board. This index attempts to measure economic activity over the next three to six months and is considered to be moderately important. It showed an increase of 0.6%, indicating we should see …..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/19/2009

2009-08-19T07:55:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened up sharply following the early losses in stocks and overnight losses in some international stock markets. This has made bonds more appealing to investors as they seek safe-haven from the expected volatility in stocks. The Dow is currently down 33 points while the Nasdaq has lost 5 points. The bond market is currently up 25/32, which will likely push this morning’s mortgage rates lower by approximately .125 - .250 of a discount point.

There is no relevant economic data scheduled for release today. As expected, the stock markets are influencing bond trading and mortgage rates. With the sizable losses in overseas markets, particularly China, U.S. stocks are likely to have a negative day also. This has helped shift funds into bonds, at least temporarily. If the U.S. stock indexes fall further than current levels, we may see further improvements to mortgage rates later today. However, a recovery in stocks could drive bond prices lower as funds move away from bonds, causing upward revisions to mortgage rates this afternoon. I said "temporarily" above because I would not be surprised to see…..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/18/2009

2009-08-18T11:27:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened down slightly despite the release of weaker than expected economic news. The stock markets have recovered some of yesterday’s losses with the Dow up 54 points and the Nasdaq up 15 points. The bond market is currently down 3/32, which should keep this morning’s mortgage rates at yesterday’s morning levels.

The Labor Department gave us July's Producer Price Index (PPI) this morning, saying that the overall index fell 0.9% and that the core data reading fell 0.1%. Analysts had predicted a 0.2% decline in the overall reading and a 0.1% rise in the core data. This means that prices at the producer level of the economy were much weaker than expected. That indicates that inflationary pressures at that level are not a concern at the moment, making long-term securities such as mortgage related bonds more attractive to investors. Unfortunately, traders seem to be more concerned with…..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/17/2009

2009-08-17T09:03:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in positive territory following early stock selling. The stock markets are following several international markets that posted losses during overnight trading. The Dow is currently down 188 points while the Nasdaq has fallen 51 points. This has helped push the bond market up 22/32 as investors seek safe-haven from falling stock prices. However, the impact on this morning’s mortgage rates has been fairly minimal. We will likely see little change from Friday’s morning rates due to volatility in trading late Friday.

There is no relevant economic data scheduled for release this morning. The rest of the week brings us the release of four reports that may influence mortgage rates, but only one of them is considered to be highly important. With no relevant auctions or speeches on tap, I suspect we will see…..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary for the week of of 08/16/2009

2009-08-17T02:58:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of four reports that may influence mortgage rates, but only one of them is considered to be highly important. With no relevant auctions or speeches on tap, I suspect we will see much less movement in mortgage rates this week compared to the past couple of weeks. There is no relevant data scheduled for release tomorrow, so look for the stock markets to drive bond trading and mortgage rates.

There are two reports scheduled to be posted Tuesday morning. The first is July's Producer Price Index (PPI) that gives us an indication of inflation at the producer level of the economy. There are two readings in the report- the overall index and the core data reading. The core data is more important because it excludes more volatile food and energy prices that can change significantly from month to month. Current forecasts call for a decline of 0.2% in the overall and a 0.1% increase in the core data reading. A larger increase in the core data could push mortgage rates higher Tuesday morning. If it reveals weaker than expected readings, we may see mortgage rates improve as a result.

The second report of the day is July’s Housing Starts data. This report gives us an indication of housing sector strength and mortgage credit demand. However, it isn't considered to be of high importance to the bond market or mortgage pricing and usually doesn't cause much movement in mortgage rates unless it varies greatly from forecasts. It is the least important of the week’s reports and is expected to show an increase in construction starts of new homes. The lower the number of starts the better the news for bonds as it would indicate a weaker than expected housing sector.

The Conference Board will give us the its Leading Economic Indicators (LEI) for July late Thursday morning. This index attempts to measure economic activity over the next three to six months and is considered to be moderately important. A higher than expected reading is bad news for the bond market because it indicates that the economy may be strengthening more than thought. However, a weaker than expected reading means that the economy may not grow as much as predicted, making stocks less appealing to investors. This also eases inflation concerns in the bond market and could lead to slightly lower mortgage rates Thursday if the stock markets remain calm. Current forecasts are calling for an increase of 0.6% in the index, indicating economic growth over the next couple of months.

July’s Existing Home Sales will close out the week’s data Friday morning. The National Association of Realtors will release this report, giving us a measurement of housing sector strength. It covers approximately 85% of home sales in the U.S., but usually does not have a major influence on bond trading and mortgage rates unless it varies greatly from analysts’ forecasts. It is expected to show an increase from June’s sales, meaning the housing sector is strengthening.

Overall, look for Tuesday to be the busiest day of the week with the PPI being released. The rest of the week will likely be influenced more by stock prices than anything else, which may be quite volatile. Therefore, keep an eye on the markets and maintain contact with your mortgage professional if you have not locked an interest rate yet.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/14/2009

2009-08-14T08:45:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in positive territory again after this morning’s economic data failed to give us any major surprises. Contributing to today’s early bond strength is a weak opening for stocks that has the Dow down 131 points and the Nasdaq down 32 points. The bond market is currently up 13/32, which with yesterday’s late strength should improve this morning’s mortgage rates by approximately .500 of a discount point compared to yesterday’s morning rates.

The Labor Department gave us today’s most important data with the release of July’s Consumer Price Index (CPI). They reported that the overall index was unchanged form June’s level and that the core data reading rose 0.1%. Both of these readings matched forecasts, indicating that consumer prices remain in-check last month. But the index has fallen 2.1% over the past 12 months, matching the largest year-over-year decline since 1950. That is good news for bonds because it means that inflation is not currently a threat to the economy. Inflation erodes the value of a bond’s future fixed interest payments, leading to higher mortgage rates. When inflation concerns are low, bonds are usually…..

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary

2009-08-13T08:46:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in positive territory following much weaker than expected consumer spending news. The stock markets are showing minor gains with the Dow up 27 points and the Nasdaq up 10 points. The bond market is currently up 15/32, which will likely improve this morning’s mortgage rates by approximately .125 of a discount point. Preventing a slightly larger improvement in rates was weakness late yesterday after the FOMC meeting.

The Commerce Department announced this morning that retail level sales fell 0.1% last month. This was well off forecasts of a 0.7% increase, meaning that consumers were spending much less than expected. Even if volatile auto-related sales are excluded, sales fell much more than expected. This is very good news for the bond market and mortgage rates because consumer spending makes up two-thirds of the U.S. economy. If consumer spending is still falling, the broader economic recovery cannot be close. Generally speaking, a weak economy is a better environment for bonds and makes mortgage-related bonds more attractive to investors.

Also posted this morning were weekly unemployment figures from the Labor Department. They reported that 558,000 new claims for benefits were filed last week. This was an increase from the previous week, but more importantly, analysts were expecting to see a decline in new claims. However, since this data basically tracks only a week’s worth of claims, it usually…….

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary afternoon update

2009-08-12T14:10:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

WEDNESDAY AFTERNOON UPDATE:
This week’s FOMC meeting has adjourned with no change to key short-term interest rates. This was widely expected by market participants. The post-meeting statement really didn’t give us any new insight to the Fed’s next move. It did renew the same thoughts previously mentioned- that the economy is leveling off but to expect weak economic conditions for the immediate future. They also indicated that inflation is not an immediate concern to the economy.

The lack of a change to rates had no impact on trading as it was expected. The portion of the statement that indicated the spiraling economy is stabilizing can be considered somewhat negative for the bond market. However, the lack of concern about inflationary pressures offset any concerns that may have arisen from the reminder than the economic downturn is slowing.

Today’s 10-year Treasury Note auction has caused…....

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/12/2009

2009-08-12T12:24:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in negative territory following early stock strength and concerns over today’s FOMC meeting adjournment. The stock markets are showing strong gains with the Dow up 130 points and the Nasdaq up 32 points. The bond market is currently down 12/32, which should push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point compared to yesterday’s morning rates.

This morning’s only relevant economic data was June’s Trade Balance report that revealed a $27.0 billion deficit. This was smaller than expected, but this data is not considered to be highly important to the markets so its impact on this morning’s trading and mortgage rates has been minimal.

It will likely be an active afternoon for the markets and mortgage rates. The results….

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/11/2009

2009-08-11T09:48:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened in positive territory following early stock weakness and favorable result sin this morning’s economic news. The stock markets are posting noticeable losses with the Dow down 97 points and the Nasdaq down 26 points. The bond market is currently up 14/32, which with yesterday’s late strength should improve this morning’s mortgage rates by approximately .375 - .500 of a discount point over yesterday’s morning rates.

Today’s relevant economic data was Employee Productivity and Costs data for the second quarter. It showed a sharp increase in productivity compared to the 1st quarter’s final reading. The 6.4% jump was higher than analysts had expected and is considered good news for bonds and mortgage rates. This data didn’t push stocks lower, but the drop in stocks has also helped boost bond prices this morning.

June’s Trade Balance report will be released early tomorrow morning. It gives us the size of the U.S. trade deficit but is the week’s least important report and likely will have little impact on the bond market and mortgage rates. Analysts are expecting to see a $28.6 billion deficit, but it will take a wide variance to directly influence mortgage pricing.

The FOMC meeting that began today will adjourn at 2:15 PM ET tomorrow. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed’s next move may be and when it will come. If the statement does not give us new information, mortgage rates will...

To read the rest of the story click on “mortgage”: mortgage

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/10/2009

2009-08-10T08:27:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened up slightly as traders prepare for this week’s data and other important events. The stock markets are showing minor losses with the Dow down 12 points and the Nasdaq down 2 points. The bond market is currently up 4/32, but we will likely see an improvement in this morning’s rates of approximately .125 - .250 of a discount point compared to Friday’s morning rates.

There is no relevant economic data scheduled for release today. The rest of the week brings us the release of six relevant economic reports in addition to another FOMC meeting. The first is Employee Productivity and Costs data for the second quarter that will be released tomorrow morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don’t see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly. Analysts are currently expecting to see an increase in productivity of 5.4%. A higher than expected reading could help improve bonds, leading to lower mortgage rates tomorrow.

The FOMC meeting will begin tomorrow morning and adjourn at 2:15 PM ET Wednesday. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed’s next move may be and when it will come. If the statement does not give us new information, mortgage rates will probably move little after its release.

The most important data of the week comes Thursday and Friday when we will get measurements of consumer spending, inflation at the consumer level of the economy, industrial production and consumer sentiment. This is where we will probably see the most movement in rates.

Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors, particularly international buyers, the bond market may move lower after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day.

Overall, look for the most movement in bond prices and mortgage rates the second half of the week. Thursday or Friday will likely turn out to be the most important day. If we get stronger than expected results in the Retail Sales report and Consumer Price Index, I fear that we may see mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary

2009-08-10T03:32:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of six relevant economic reports in addition to another FOMC meeting. The first is Employee Productivity and Costs data for the second quarter that will be released Tuesday morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don’t see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly. Analysts are currently expecting to see an increase in productivity of 5.4%. A higher than expected reading could help improve bonds, leading to lower mortgage rates Tuesday.

June’s Trade Balance report will be released Wednesday morning. It gives us the size of the U.S. trade deficit but is the week’s least important report and likely will have little impact on the bond market and mortgage rates. Analysts are expecting to see a $28.5 billion deficit, but it will take a wide variance to directly influence mortgage pricing. The FOMC meeting will begin Tuesday morning and adjourn at 2:15 PM ET Wednesday. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed’s next move may be and when it will come. If the statement does not give us new information, mortgage rates will probably move little after its release.

Thursday morning’s sole monthly report is July’s Retail Sales data. This data is very important to the financial markets and mortgage rates because it helps us measure consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected increase would indicate that consumers are spending less than previously thought, potentially slowing the economic recovery. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage-related bonds more attractive to investors. Current forecasts are calling for an increase of 0.7%.

Friday brings us the release of three reports. The first is July’s Consumer Price Index (CPI) at 8:30 AM. The CPI is one of the most important reports we see each month. It measures inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. The more important of the two is the core data because it excludes more volatile food and energy prices. Current forecasts call for no change in the overall index and a 0.1% increase in the core data reading. Declines in the readings, especially in the core data, should lead to a bond rally and lower mortgage rates. However, stronger than expected readings will likely cause a spike in mortgage pricing Friday. The remaining two pieces of data are relevant to mortgage rates but not nearly important as the CPI is. The second report of the day is Industrial Production data for July. 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 of moderately high importance and may cause movement in mortgage rates. Analysts are currently expecting to see a 0.4% increase in production between June and July. A larger increase in output could lead to higher mortgage rates Friday, but only if the CPI is a non-factor.

The last report of the day will come from the University of Michigan who will release its Index of Consumer Sentiment for August at 9:45 AM. This index gives us a measurement of consumer willingness to spend. If confidence is rising, then consumers are more apt to make large purchases. This helps fuel consumer spending and economic growth. A drop in confidence will probably help boost bond prices. If the index rises, indicating that confidence is rising and spending is likely to continue, we may see mortgage rates move higher Friday morning. However, this is the least important of the day’s three reports and will probably have the least impact on rates. Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lower after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day.

Overall, look for the most movement in bond prices and mortgage rates the second half of the week. Thursday or Friday will likely turn out to be the most important day. If we get stronger than expected results in the Retail Sales and CPI releases, I fear that we may see mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

MA Mortgage Rate Commentary 08.07.2009

2009-08-07T09:27:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened down sharply following the release of stronger than expected employment numbers. The stock markets are reacting favorably to the data with the Dow up 136 points and the Nasdaq up 32 points. The bond market is currently down 28/32, which should push this morning’s mortgage rates higher by approximately .375 - .500 of a discount point compared to yesterday’s morning rates.

The Labor Department reported this morning that only 247,000 jobs were lost last month and that the U.S. unemployment rate fell to 9.4%. Both of these readings were stronger than expected. Analysts had forecasted a job loss of 328,000 and an increase on the unemployment rate of 0.1% to bring it to 9.6%. In addition, average hourly earnings also exceeded forecasts with a 0.2% increase.

Today’s news was definitely negative for bonds and mortgage rates. It indicates that the employment sector is not as bad as many had thought. While it was still softening last month, it was at a much slower pace than expected. That helps support the theory that the recession may be nearing an end. In fact, some analysts are already stating they think it has ended. This is bad for bonds because economic growth often creates an environment with inflation concerns that make bonds less attractive to investors. The result usually ends up being higher mortgage rates as investors shift funds into a growing stock market.

Next week is another busy one for the markets and mortgage rates. There are several very important economic releases scheduled to be posted in addition to another FOMC meeting that can heavily influence bond trading and mortgage rates. None of them is due out Monday, but there is relevant data or events scheduled for every other day of the week. Look for more details on next week’s events in Sunday’s weekly preview.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Mortgage Rate Commentary 08/06/2009

2009-08-06T08:56:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened relatively flat with no important economic data on the schedule for today. The stock markets are showing minor losses with the Dow down 15 points and the Nasdaq down 11 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 .125 - .250 of a discount point due to weakness in bonds late yesterday.

Today’s only semi-relevant data was weekly unemployment claims from the Labor Department. They reported that 550,000 new claims for benefits were filed last week. This was much lower than the 580,000 that was expected, but since this data basically tracks only a week’s worth of claims it usually has a minimal impact on mortgage rates.

Tomorrow morning brings us the almighty monthly Employment report. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. This report is considered to be one of the single most important releases that we see each month, therefore, can heavily influence the markets and mortgage rates.

Current forecasts are calling for the unemployment rate to have risen 0.1% to 9.6% while approximately 328,000 jobs were lost. The unemployment rate probably will not be much of a factor unless it moved much more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing tomorrow morning if they vary from forecasts. If the data shows stronger readings such as fewer jobs lost in the month or a lower than expected unemployment rate, expect to see mortgage rates move higher tomorrow. Weaker than expected readings should push mortgage rates lower.

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... Float if my closing was taking place over 60 days from now...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Massachusetts Refinance Savings analysis

2009-08-06T05:50:00.000-07:00

Is now the right time to refinance your Massachusetts Mortgage and take advantage of today's low mortgage rates? Let me prepare a no cost or obligation refinance savings analysis for you. If now is not the best time we can quickly determine your target rate and I will notify you once it becomes available.

See below for example:

What Every Massachusetts Homeowner Should Know About FHA Streamline Refinance Mortgages

2009-08-05T10:24:00.000-07:00

What Every Massachusetts Homeowner Should Know About FHA Streamline Refinance Mortgages

Few Massachusetts mortgage borrowers know this, but the Federal Housing Administration (FHA) allows streamline refinances on FHA mortgages and has been since the early 1980s.
The word “streamline” refers to the fact that this particular form of home loan refinance involves a significantly smaller amount of red tape and paperwork than the more typical refinances.
Basic requirements of the FHA streamline refinance are:
• The mortgage to be refinanced should be an FHA insured loan.
• The mortgage to be refinanced should be current.
• The refinance must benefit the borrower by lessening the borrower’s interest payments and monthly principal.
• No money can be taken out of the existing equity on refinanced mortgages through a streamline refinance.
Benefits of an FHA Streamline Refinance
• Appraisal may not be required
• Reduced Documentation
• No income verification, credit check, underwriting fee or employment verification
• Easily decrease or increase the period of the term of the existing mortgage loan
• Benefit from low interest rates
• Very little, even zero, other expenses involved
Massachusetts home owners who elected to go with FHA Streamline Refinance did so because the refinance is also available with zero out-of-pocket expenses.
The zero-out-of-pocket option takes place in one of the following two ways:
1. The expenses, if any, can be covered by the lender in return for a slightly higher interest rate.
2. As an alternative, the expenses may be added to the new loan, provided the property has enough equity to cover the additional amount.
Lenders handle FHA Streamline Refinance mortgages in different ways…
Out-of-Pocket Mortgage Costs Covered by Increasing the Interest Rate
Few lenders give “no cost” refinances i.e. zero out-of-pocket costs to borrowers. This is done by increasing the interest rate slightly on the loan. With this premium, your mortgage lender will typically cover any closing costs required as part of the transaction.
All out-of-Pocket Mortgage Costs Covered by Increasing the FHA Mortgage Amount
Lenders may allow borrowers to pass on paying out-of-pocket expenses by folding the closing expenses into the next mortgage value. This is done only if there is enough equity in your property, as determined by the FHA appraisal.
Please note, FHA Streamline Refinances may be done without an appraisal, but in these cases – the new loan value must be the same as the original loan value. (No increase to existing loan amount)
Note: Investment properties (properties where the borrower no longer occupies as his or her full-time primary residence) can be refinanced via the straight FHA Streamline Refinance process only. In these cases, out-of-pocket expenses must be paid by the borrower.
Interested in an FHA Streamline Refinance? Call me at 800-941-5616 or apply online, and I will review your scenario with you. Ask for or mention Jeff Drew.

Mortgage Rate Commentary 08/05/2009

2009-08-05T09:30:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in negative territory as yesterday’s selling carries into today. The stock markets are showing losses with the Dow down 76 points and the Nasdaq down 20 points. The bond market is currently down 5/32, which with yesterday’s weakness should push this morning’s mortgage rates higher by approximately .375 of a discount point.

The Commerce Department said this morning that June’s Factory Orders data rose 0.4%. This was a little stronger than revised forecasts had called for, but has had little impact on today’s trading. The data is not considered to be highly important and traders are looking towards Friday’s release for major news on the economy.

There is no relevant monthly or quarterly economic news scheduled for release tomorrow. The Labor Department will give us last week’s unemployment figures early tomorrow morning, but this data is considered to be of low importance to the markets. It will not impact bond trading or mortgage rates unless we see a significant variance from the 580,000 new claims for benefits that analysts are expecting to see.

The most important piece of data this week and arguably each month is the monthly Employment report that will be posted Friday morning. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading for July. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. This report is considered to be one of the single most important releases that we see each month, therefore, can heavily influence the markets and mortgage rates.

While the GDP is arguably the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Friday’s report is expected to show that the unemployment rate rose to 9.6% last month while approximately 328,000 jobs were lost. The unemployment rate probably will not be much of a factor unless it moved much more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing Friday morning if they vary from forecasts.

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... Float if my closing was taking place over 60 days from now...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com

MA Mortgage Rate Commentary 08-04-2009

2009-08-04T09:21:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market opened relatively flat but has since fallen into negative territory following an uneventful open in stocks and no major surprises in this morning’s economic data. The stock markets are showing modest gains with both the Dow and Nasdaq up a couple of points. The bond market is nearly currently down 10/32 from yesterday’s close, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

This morning’s only relevant economic data was June’s Personal Income and Outlays data. It showed a 1.3% drop in income and a 0.4% rise in spending last month. The income reading was weaker than expected, but a sizable decline was forecasted anyhow. The spending reading exceeded the 0.3% increase that was expected, meaning consumers spent a little more last month than thought. The drop in income can be considered positive for bonds, but the higher than expected spending figure offsets the positive news in the income reading. In other words, this morning’s data had little influence on this morning’s mortgage rates.

Tomorrow morning brings us the release of June’s Factory Orders data. This report 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 only orders for big-ticket items. Since a significant portion of the data was released last week, this report may not have as big of an impact on the markets as you may think. Analysts are expecting to see an increase of approximately 0.5% in new orders. A smaller than expected increase would be considered good news for bonds and mortgage pricing.

There is no relevant monthly or quarterly economic news scheduled for release Thursday, but Friday’s data is a different story. That is when we will see the almighty monthly Employment report. It has the potential to erase a week’s worth of gains or recover a week’s worth of losses in mortgage rates. With no data scheduled for release Thursday, I would not be surprised to see pressure in bonds as investors prepare for that release.

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... Float if my closing was taking place over 60 days from now...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com

Mortgage Rate Advisory 08/03/2009

2009-08-03T09:00:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened down sharply following early stock gains and a stronger than expected economic release. The stock markets are starting the week in positive territory with the Dow up 109 points and the Nasdaq up 20 points. The bond market is currently down 38/32, which should push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point compared to Friday’s morning rates. Preventing a much larger increase in this morning’s rates was strength in bonds late Friday, meaning this morning’s losses more or less erase Friday’s late gains. However, if bond prices continue to fall, we can expect to see further increases to mortgage rates later today.

Today’s only relevant economic data came from the Institute for Supply Management (ISM) who reported that their manufacturing index for July rose to 48.9. This was an increase from June’s 44.8 and higher than the 46.5 that was expected. A reading below 50 means that more surveyed executives said business worsened than those who said it had improved. But fewer felt conditions had worsened than last month and than was expected this month. Therefore, today’s report was bad news for bonds and mortgage rates because manufacturer sentiment was stronger than expected, indicating stabilization in the manufacturing sector. A strengthening manufacturing sector would be key to the overall economic recovery that bond traders fear.

Tomorrow morning gives us the release of June’s Personal Income and Outlays data. This report helps us measure consumer ability to spend and current spending habits. If it shows sizable increases, bond selling could lead to higher mortgage rates. Current forecasts are calling for a decline of 1.0% in income and an increase of 0.3% in spending. The sizable decline in June’s income that is expected is simply a result of the unusual spike in May’s income and not a sign of declining wages.

Overall, I am expecting to see another active week for mortgage rates. The most important day is Friday due to the data being released, but today’s movement in bonds showed that this morning’s data was extremely relevant to the markets also. The rest of the week is likely to be a little calmer than today and what could take place Friday. But day-to-day movement in rates should be expected every day this week. Accordingly, this is a good week to maintain contact with your mortgage professional.

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... Float if my closing was taking place over 60 days from now...
©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com

The week ahead in the mortgage market week of 08.02.2009

2009-08-03T05:48:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

There are four relevant reports scheduled for release this week that are likely to affect mortgage pricing. The first important release scheduled for the week is the Institute for Supply Management’s (ISM) manufacturing index for July late tomorrow morning. This index measures manufacturer sentiment by surveying trade executives about business conditions during the month and is considered to be of fairly high importance to the markets. A reading below 50.0 means that more surveyed executives felt that business worsened last month than those who said it had improved. Tomorrow’s release is expected to show a reading of 46.5, up from last month’s 44.8, indicating manufacturer sentiment improved from June. A smaller than expected reading would be good news for the bond market and would likely improve mortgage rates tomorrow. However, a stronger than expected reading could lead to higher mortgage rates.

To read the rest of the story click here: Massachusetts Mortgage

$8000 Tax Credit ENDS SOON!

2009-07-31T06:42:00.000-07:00

The $8,000 first-time buyer tax credit program ends November 30 of 2009. Just 4 months away. That means buyers need to CLOSE on their homes by NOVEMBER 30th in order to receive the tax break.

Details: The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The American Recovery and Reinvestment Act of 2009 replaces The Housing and Economic Recovery Act of 2008 which only offered a $7500 tax credit. Also under the previous Housing and Economic Recovery Act of 2008, Home buyers were required to repay the tax credit to the government, without interest, over 15 years or when they sell the house, if there was sufficient capital gain from the sale. If there was insufficient profit, then the remaining credit payback would have been forgiven.

What is the home buyer tax credit? It is a tax refund for 10% of a primary home’s purchase price (up to $8K). The amount not used on your 2009 tax return will be refunded directly to you.

Who is eligible to receive the credit? First-time home buyers and those who have not owned a principal residence in the last three years prior to purchase.

Do income limits apply? Yes. The full amount is given to individuals who make up to $75K and married couples who make up to $150K per year (adjusted gross annual income). The credit amount phases out between $75K and $95K for individuals; $150K and $170K for joint filers.

If you want to take advantage of the home buyer tax credit, contact me to get prequalified for a a mortgage and to discuss your plans. Keep in mind it’s typically 45-60 days to close on a traditional real estate transaction (short sales can take much longer).

Mortgage Rate Advice 07-30-2009

2009-07-30T15:25:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in negative territory following strong stock gains and renewed fears about the amount of debt the government is selling. The stock markets are rallying around fairly positive earnings reports that have the Dow up 129 points and the Nasdaq up 35 points. The bond market is currently down 11/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point compared to yesterday’s morning rates.

Today’s only economic news was weekly unemployment claims from the Labor Department. They reported that 584,000 new claims for unemployment benefits were filed last week. This nearly matched forecasts and therefore has had no impact on this morning’s bond trading or mortgage rates.

Neither of yesterday’s afternoon events were favorable to bonds. The Fed Beige Book indicated that the economy is stabilizing in several regions of the U.S., which is bad for bonds because economic strength makes long-term securities such as mortgage-related bonds less attractive to investors. Yesterday’s 5-year Note sale did not go too well, leading many to believe there is little chance of a strong demand in today’s 7-year Note sale. If we do get another lackluster interest in today’s auction, we most likely will see further weakness in bonds this afternoon. That may cause upward revisions to mortgage rates after the results are posted at 1:00 PM ET.

There are two important releases scheduled to be posted tomorrow morning. The first is the preliminary reading of the 2nd Quarter Gross Domestic Product (GDP), which is considered to be the best indicator of economic activity. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. This reading is arguably the single most important piece of data we get regularly. Current forecasts are estimating that the economy shrank at a 1.5% annual rate during the second quarter. A smaller decline will probably hurt bond prices, leading to higher mortgage rates tomorrow. But a larger than expected decline could fuel a bond market rally and lead to lower mortgage pricing.

The second report of the day is the 2nd Quarter Employment Cost Index (ECI) that measures employers’ costs for wages and benefits. It is considered to be an important measurement of wage inflation and can have a pretty big impact on the bond market and mortgage rates if it varies much from forecasts. If it shows a rapid increase, raising inflation concerns, the bond market may drop and mortgage rates rise. It is expected to reveal an increase of 0.3%.

I would not be surprised to see afternoon revisions to mortgage rates this afternoon and a sizable move tomorrow. If today’s auction does not show a fairly strong interest from investors, particularly international buyers, and tomorrow’s GDP reading gives us a stronger than expected reading, those changes will probably reflect higher rates. Accordingly, please proceed cautiously if still floating an interest rate.

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... Float if my closing was taking place over 60 days from now...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Massachusetts borrowers should call me 800-941-5616 or email me with questions: jeff@starmortgage.com

Massachusetts Mortgage Rate Commentary 7/29/2009

2009-07-29T16:41:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened in positive ground following the release of weaker than expected economic data and another soft opening in stocks. The Dow is currently down 37 points while the Nasdaq has slid 10 points. The bond market is currently up 11/32, which should improve this morning’s mortgage rates by approximately .125 of a discount point over yesterday’s morning rates.

The Commerce Department reported this morning that new orders for durable goods fell 2.5% last month. This was much weaker than the 0.5% decline that was expected, indicating that manufacturing activity for big-ticket items is slowing. That is good news for bonds and mortgage rates because a slowing manufacturing sector makes an economic recovery less likely anytime soon. However, a secondary reading that tracks new orders excluding the most volatile transportation-related orders showed a 1.1% increase. That was much higher than analysts were expecting, but fortunately bond traders have ignored the news.

We have an afternoon release that may affect bond trading and mortgage rates. The Federal Reserve will release its Beige Book report at 2:00 ET today. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. Since Fed Chairman Ben Bernanke’s testimony to Congress last week gave us a recent update, I don’t think we will see any significant surprises in this report. Therefore, we will likely see little movement in mortgage rates this afternoon as a result of this report, but the possibly does exist.

Also today is the 5-year Treasury Note auction. Results of the sale will be posted at 1:00 PM ET. If it was met with a strong demand, we may see bond prices rise and mortgage rates fall during afternoon trading. However, a lackluster interest could lead to higher mortgage rates later today.

There is no relevant monthly or quarterly economic data scheduled for release tomorrow. The Labor Department will give us last week’s unemployment figures, but this data is not considered to be of high importance because it basically tracks only a week’s worth of new claims. It is expected to show that 585,000 new claims for unemployment benefits were filed last week. The larger the number, the better the news for bonds and mortgage rates. But, unless it varies greatly from forecasts, I don’t see this news having much of an influence on bond trading or mortgage rates tomorrow.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Call me 800-941-5616 or email me with questions: jeff@starmortgage.com

Mass Mortgage Rate Commentary 07.28.2009

2009-07-28T08:28:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened in positive ground following early stock weakness and a weaker than expected consumer confidence reading. The stock markets are showing losses with the Dow down 34 points and the Nasdaq down 6 points. The bond market is currently up 14/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.

The Conference Board gave us today’s important data with the release of their Consumer Confidence Index (CCI) for July. This index measures consumer sentiment about their personal financial situations, giving us an idea of consumer willingness to spend. It showed a reading of 46.6 that fell short of forecasts by a couple of points. This is good news for bonds and mortgage rates because a less optimistic consumer is less likely to make a large purchase in the near future, limiting economic growth.

Tomorrow brings us two reports that may influence mortgage rates. The first will come from the Commerce Department when they post June’s Durable Goods Orders at 8:30 AM ET. Current forecasts are currently calling for a decline in news orders of 0.5% from May to June. This data gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items. These are products that are expected to last at least three years. A stronger than expected number may lead to higher mortgage rates tomorrow morning. If it reveals a much larger than expected decline, mortgage rates should drop. It should be noted that this data is known to be extremely volatile from month to month, so a minor difference between forecasts and the actual reading may not move mortgage rates much.

The Federal Reserve will release its Beige Book report at 2:00 PM ET tomorrow afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. Since Fed Chairman Ben Bernanke’s testimony to Congress last week gave us a recent update, I don’t think we will see any significant surprises in this report. Therefore, we will likely see little movement in mortgage rates tomorrow afternoon as a result of this report, but the possibly does exist.

Also worth mentioning are a couple of Treasury auctions that may affect bond trading and mortgage rates this week. The two most important are tomorrow’s 5-year and Thursday’s 7-year Note sales. The last auctions of the 5-year and 7-year securities were met with very good demand from investors, leading to bond strength following the sales. But there is a record amount of debt being sold this week, so we need to proceed with caution over the next few days. Results of the sales will be posted 1:00 PM ET each day. If investor interest is strong again in Wednesday and Thursday’s sales, we can expect the broader bond market to rally and mortgage rates to move lower. However, lackluster demand could lead to bond selling and higher mortgage rates during afternoon trading those days.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Call me 800-941-5616 or email me with questions: jeff@starmortgage.com

S&P Says Home Prices Improve for Fourth Straight Month

2009-07-28T07:54:00.000-07:00

S&P Says Home Prices Improve for Fourth Straight Month

Home prices across the nation improved for their fourth consecutive month in May but remain about 17% lower than one year ago, according to the S&P Case-Shiller Home Price Index.

The 10-City and 20-City Composites are 16.8% and 17.1% lower, respectively, compared to May 2008. Historically, those are major declines, but in the current context they represent the slowest annual price drops in close to a year. Just one month before…

To view the rest of the story and see charts and graphs click here

Mortgage Regulation Change for 7/30/2009

2009-07-27T13:18:00.000-07:00

The Mortgage Disclosure Improvement Act

On July 30th, 2009 the Mortgage Disclosure Improvement Act will become effective. The underlying initiative of the MDIA is to provide ample time for a borrower who makes a written application for a home mortgage to review a Truth In Lending Disclosure in advance of incurring any expenses, excluding reasonable credit report fees. The Truth In Lending Disclosure is better know as a TIL.

The Mortgage Disclosure Improvement Act has a major impact on the timing of the TIL that can effect the closing date of residential mortgage loans. The intention of this article is to help all parties of a purchase or refinance mortgage loan transaction understand how the MDIA can affect a closing date.

No fees, other than a credit report fee, may be paid by the consumer until after the consumer has received the initial TIL. The TIL is considered received by the consumer three business days after it has been mailed, not including the day of mailing, then the appraisal fee and any other up front fees may be collected for further processing of the loan application.

This is very important for the timing of a loan closing since an application must include income and asset verification at the time of signing a loan application for a TIL to be produced. Any delay of this information up front will likely affect the time necessary to order an appraisal to make the application complete for a timely closing.

Furthermore, if the Annual Percentage Rate (better known as the APR) should change prior to closing then a new TIL must be produced and a 3 day mail time and 3 day review time must be allotted to the consumer. Under this circumstance a closing can take place on the 7th business day from mailing. Some of the factors that could effect the APR changing from the initial TIL being issued is a consumer locking a rate after the application is made, (Example maybe the borrower changes from a loan with no points to paying points to lower the rate) any rate lock extension fees should a loan not meet the closing date anticipated at the time of the initial rate lock, and any closing agent fees that may change prior to closing.

Business days are defined as Monday through Saturday excluding federal holidays. As an example lets assume a loan application is made and a TIL is produced on a Monday. Tuesday would be day 1 of the 3 day mail time required. Friday would be the first day the appraisal and any other up front fees necessary for processing the loan application can be collected.

Here is another example and why it will be very important to consider all variables when locking a mortgage rate. The application is taken at 6PM on a Friday evening. Although we may be ale to send the application that night to the lender they are most likely not working on Saturday or Sunday to receive the application and send the TIL. The earliest the TIL would be created and sent would be Monday. Leaving 3 business days for the receipt of the TIL, the earliest possible day for ordering the appraisal would be the following Friday. One week has past since the time of application.

Star Mortgage is taking a proactive approach to the MDIA by suggesting to all consumers to make application on purchase transactions as early as possible, lock in the terms of their loan as early as possible, and requiring closing agents to provide preliminary HUD settlement statements at the time of the title order being placed by Star Mortgage that will list all their fees.

Knowing that not all transactions are alike, if all parties to a purchase or refinance transaction can understand the possible timing implications; my hope is that your loans will still continue to close as smoothly as you would expect them to.

Please feel free to call Jeff Drew at Star Mortgage at 1-800-941-5616 should you need further clarification. Thank you for your continued business.

Mortgage Market Commentary 07/27/2009

2009-07-27T08:02:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in negative territory as investors prepare for this week’s events. The stock markets are showing losses with the Dow down 41 points and the Nasdaq down 14 points. The bond market is currently down 17/32, which should push this morning’s mortgage rates higher by approximately .250 of a discount point over Friday’s morning rates.

Today’s only relevant economic news was June’s New Home Sales that revealed a surprising jump of 11% in sales of newly constructed homes. This was a much larger than expected increase and put sales at their highest level since last November, hinting that the housing sector may be stabilizing. This is negative news for bonds and mortgage rates, but today’s weak opening in bonds has more to do with the amount of government debt being sold this week (over $200 billion) than this data.

Tomorrow’s key report is July’s Consumer Confidence Index (CCI) at 10:00 AM ET. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, we may see bond prices rise and mortgage rates drop Tuesday. Current forecasts are calling for a reading of 48.7, which would be a lightly lower reading than June’s reading.

Also worth mentioning are a couple of Treasury auctions that may affect bond trading and mortgage rates this week. The two most important are Wednesday’s 5-year and Thursday’s 7-year Note sales, but there are auctions everyday except Friday. The last auctions of the 5-year and 7-year securities were met with very good demand from investors. That led to bond strength following the sales. But this is a record amount of debt being sold this week, so we need to proceed with caution over the next few days. Results of the sales will be posted 1:00 PM ET each day. If investor interest is strong again in Wednesday and Thursday’s sales, we can expect the broader bond market to rally and mortgage rates to move lower. However, lackluster demand could lead to bond selling and higher mortgage rates during afternoon trading those days.

Overall, it likely will be a fairly active week in the mortgage market. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important report of the week is Friday’s preliminary GDP reading, making it one of the most important days of the week. But it is difficult to say which day we can expect to see the most movement in rates as several of releases and scheduled events have the potential to influence mortgage rates.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Call me 800-941-5616 or email me with questions: jeff@starmortgage.com

The Mortgage Market for week of 7/26/200

2009-07-27T05:36:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

There are several important reports scheduled for release this week that are likely to affect mortgage pricing. The first is tomorrow’s release of June’s New Home Sales that gives us a measurement of housing sector strength and mortgage credit demand. It is expected to show an increase in sales of newly constructed homes, indicating that the housing sector gained some strength. That would be considered negative news for bonds, but since this data tracks only 25% of all home sales it usually has little impact on the bond market and mortgage rates unless it varies greatly from forecasts.

The Conference Board will post their Consumer Confidence Index (CCI) for July late Tuesday morning. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, we may see bond prices rise and mortgage rates drop Tuesday. Current forecasts are calling for a reading of 48.7, which would be a lightly lower reading than June’s reading.

Wednesday brings us two events that are relevant to mortgage rates. The first will come from the Commerce Department when they will post June’s Durable Goods Orders at 8:30 AM ET. Current forecasts are currently calling for a decline in news orders of 0.5% from May to June. This data gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items. These are products that are expected to last at least three years. A stronger than expected number may lead to higher mortgage rates Wednesday morning. If it reveals a much larger than expected decline, mortgage rates should drop. It should be noted that this data is known to be extremely volatile from month to month, so a minor difference between forecasts and the actual reading may not move mortgage rates much. The Federal Reserve will release its Beige Book report Wednesday afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. Since Fed Chairman Ben Bernanke’s testimony to Congress last week gave us a recent update, I don’t think we will see any significant surprises in this report. Therefore, we will likely see little movement in mortgage rates Wednesday afternoon as a result of this report.

There is no relevant monthly or quarterly data scheduled for release Thursday, but there are two releases scheduled to be posted Friday morning. The first is the preliminary reading of the 2nd Quarter Gross Domestic Product (GDP), which is considered to be the best indicator of economic activity. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. This reading is arguably the single most important we get regularly. Current forecasts are estimating that the economy shrank at a 1.5% annual rate during the second quarter. A smaller decline will probably hurt bond prices, leading to higher mortgage rates Friday. But a larger than expected decline would likely fuel a bond market rally and lead to lower mortgage pricing. The second report of the day Friday is the 2nd Quarter Employment Cost Index (ECI) that measures employers’ costs for wages and benefits. It is considered to be an important measurement of wage inflation and can have a pretty big impact on the bond market and mortgage rates if it varies much from forecasts. If it shows a rapid increase, raising inflation concerns, the bond market may drop and mortgage rates rise. It is expected to reveal an increase of 0.3%.

Also worth mentioning are a couple of Treasury auctions that may affect bond trading and mortgage rates this week. The two most important are Wednesday’s 5-year Note and Thursday’s 7-year Note sales. The last auctions of these securities were met with very good demand from investors. That led to bond strength following the sales. Results of this week’s auctions will be posted 1:00 PM ET each day. If investor interest is strong again, we can expect the broader bond market to rally and mortgage rates to move lower. However, lackluster demand could lead to bond selling and higher mortgage rates Wednesday and Thursday afternoons.

Overall, it likely will be a fairly active week in the mortgage market. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important report of the week is Friday’s preliminary GDP reading, making it one of the most important days of the week. But it is difficult to say which day we can expect to see the most movement in rates as several of releases and scheduled events have the potential to influence mortgage rates.

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...
©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Call me 800-941-5616 or email me with questions: jeff@starmortgage.com

Mortgage Commentary week of 7-12-2009

2009-07-13T05:52:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of five important economic reports for the bond market to digest. Several of these reports are considered to be of high importance, meaning we will likely see volatility in the financial markets and mortgage pricing over the next several days. There are also plenty of corporate earnings releases scheduled for the stock markets this week along with the minutes from the last FOMC meeting.

The first piece of data comes Tuesday morning with the release of June’s Producer Price Index (PPI). The PPI is very important because it measures inflationary pressures at the producer level of the economy. It is expected to show a 0.8% increase in the overall reading and a 0.1% rise in the core data reading. The core reading is the more important of the two because it excludes more volatile food and energy prices. The bond market should react quite favorably if we get weaker than expected readings, but a larger than expected jump in the core reading could send mortgage rates higher Tuesday. June’s Retail Sales report will also be posted Tuesday. The Commerce Department is expected to say that sales at retail establishments rose 0.5% last month. This data is considered to be of high importance because it measures consumer spending. Consumer spending makes up two-thirds of the U.S. economy, so any related data is watched closely. A smaller than expected increase in sales could help fuel a bond rally and lead to lower mortgage rates, depending on the results of the PPI report.

Next on tap is Wednesday’s release of June’s Consumer Price Index (CPI). It is a mirror of Tuesday’s PPI with the exception that the CPI measures inflation at the more important consumer level of the economy. Analysts have forecasted a 0.6% increase in the overall index and a 0.1% rise in the core data. The core data is also considered to be the key reading because it gives us a more stable measure of inflation. Higher than expected readings could raise inflation fears and push mortgage rates higher both days. June’s Industrial Production data will also be posted Wednesday morning. This data measures output and U.S. factories, mines and utilities, giving us an indication of manufacturing sector strength. It is expected to show a 0.6% decline in production, indicating that the manufacturing sector showed weakening conditions during the month. That is basically good news for bonds, however, with seasonal shutdowns and auto-related weakness likely included, a sizable decline should not surprise many.

Also worth noting about Wednesday is the release of the minutes from the last FOMC meeting. There is a possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members during discussion and voting at the last meeting or give any indication of the Fed’s possible next move with monetary policy.

There is no relevant monthly or quarterly data scheduled for release Thursday. Friday’s only relevant data is June’s Housing Starts report. This data gives us an indication of housing sector strength, but is not considered to be of high importance. Analysts are currently expecting to see a small decline in new starts of housing projects. However, I don’t see this data having much of an impact on mortgage rates Friday unless it varies greatly from forecasts.

Overall, I think we will probably see the most movement in mortgage pricing Tuesday or Wednesday due to the importance of the economic releases those days. The week’s corporate earnings also have the potential to heavily influence bond trading and mortgage rates via stock market swings. If the major earnings reports show better than expected results, we can expect to see the major stock indexes rally. This would lead to a shift of funds from bonds to stocks and in the process bonds will fall. The results would be higher mortgage rates. The other possibility is weaker than expected results from the key companies that would lead to stock selling and a bond market rally. One thing is safe bet though- it will likely be an active week for the markets and mortgage rates. Accordingly, please proceed cautiously if still floating an interest rate.

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... Float if my closing was taking place over 60 days from now...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Mortgage Rate Advice 07-08-09

2009-07-08T11:48:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened flat again as investors prepare for the events of the next couple of days. The stock markets are showing minor gains after yesterday’s afternoon sell-off. The Dow is currently up 28 points while the Nasdaq is nearly unchanged. The bond market is currently up 3/32, which will likely keep this morning’s mortgage rates near yesterday’s morning rates.

There is no relevant economic data scheduled for release yet again today. But we do have two issues that are quite relevant to bond trading and mortgage rates. The first is today’s 10-year Treasury Note auction. Results of the sale will be posted at 1:00 PM ET. If the sale was met with a strong demand from investors, particularly international buyers, we could see bonds rally during afternoon trading. The flip side is that a weak demand would indicate a waning interest in U.S. securities, making current bonds less appealing to investors. That likely would drive bond prices lower and mortgage rates higher this afternoon.

The second event is the release of quarterly earnings from Dow component Alcoa after the stock markets close today. They traditionally are the first major company to release earnings each quarter. If their results and forecasts fall short of expectations, we can expect to see stocks fall during after-hours trading and early tomorrow morning. The stock weakness could drive bonds higher as traders seek safe-haven in bonds. But if they beat forecasts, we will probably see stocks move higher, drawing funds from bonds and leading to higher mortgage rates in the morning.

The only semi-relevant economic data scheduled for release tomorrow morning are weekly unemployment figures from the Labor Department. They are expected to say that 600,000 new claims for unemployment benefits were filed last week. This would be a decline from the previous week’s total. However, this data usually has a limited impact on bond trading and mortgage rates since it gives us only a week’s worth of new claims. With no other relevant economic data on the calendar tomorrow and little news already posted this week, we may see a slightly stronger than usual reaction to the results. But I don’t see this data being a market mover tomorrow or significantly affecting mortgage rates.

Also tomorrow is the Treasury’s sale of 30-year Bonds. This sale is less likely to affect mortgage rates than today’s 10-year Note sale does, but that doesn’t mean we can ignore its results. The same principals apply as today’s sale—a strong demand is favorable for bonds while a lackluster interest could lead to bond weakness and potential increases to mortgage rates.

Friday morning gives us some factual monthly economic data for the markets to digest. Neither of the two reports are considered to be of high importance to the financial markets or mortgage rates, but do carry enough weight to cause some movement if their results vary greatly from forecasts. We will touch more on those in tomorrow’s commentary.

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...
©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Mortgage Rate Commentary

2009-07-02T09:46:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Thursday’s bond market has opened in positive territory following a weak opening on stocks. The stock markets are posting sizable losses with the Dow down 174 points and the Nasdaq 43 points. The bond market is currently up 9/32, which, with yesterday's late strength, should improve this morning’s mortgage rates by approximately .375 of a discount point compared to yesterday’s morning rates.

This morning’s economic data gave us mixed results, beginning when the Labor Department reported that the U.S. unemployment rose 0.1% last month to stand at 9.5%. This was slightly lower than the 9.6% that many analysts and market traders had expected and can be considered negative for bonds because it fell short of forecasts. However, the other two headline numbers from this report gave us favorable results and are making the biggest impact on bond trading this morning. The report showed that 467,000 jobs were lost during the month, exceeding forecasts of approximately 365,000. In addition, the reading that gives average hourly earnings showed no change from May’s level. This means that earnings did not rise when they were expected to move higher 0.1%. While the earnings data may not be good for workers, it shows that wage inflation is little threat at this time.

May’s Factory Orders data was released late this morning by the Commerce Department. It showed that combined orders for durable and non-durable goods rose 1.2% last month. This was also stronger than analysts’ forecasts and hints that manufacturing activity was better than expected. Fortunately, this data is not one of the most important reports we see each month and has not derailed this morning’s momentum from the employment figures.

Overall, the Employment report was favorable for bonds with the larger than expected decline in jobs taking center stage. The unemployment rate was somewhat of a disappointment, but it was still an increase from May’s rate. The average hourly earnings reading is the least important of the three but still gave us favorable results. The Factory Orders report was not favorable to bonds or mortgage rates, but it also has nowhere near the level of importance as the monthly Employment report. Therefore, today’s data can be considered good news for bonds and mortgage rates.

The financial markets will be closed tomorrow in observance of the Independence Day holiday and will reopen Monday morning. There will not be an early close in the bond market today, but I suspect that trading will be thin during afternoon hours as market participants head home for the holiday weekend. This means we should see a fairly quiet afternoon in bonds and mortgage pricing as long as no unexpected news surprises the markets.

Next week is very light in terms of relevant economic data being posted. This could leave the bond market and mortgage rates to the mercy of outside influences. There will be no update to this report tomorrow, but look for details on next week’s events in Sunday’s weekly preview.

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...
©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Mortgage Rate Commentary 06-26-2009

2009-06-26T09:21:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in positive territory again despite stronger than expected results in this morning’s economic data. The stock markets are showing losses with the Dow down 56 points and the Nasdaq down 5 points. The bond market is currently up 5/32, but we will likely see little change in this morning’s mortgage rates.

May’s Personal Income and Outlays data was posted early this morning, revealing a 1.4% jump in income and a 0.3% rise in spending. The spending reading was very close to revised forecasts, but the income reading greatly exceeded forecasts. However, a good portion of that increase was due higher unemployment limits and revised payroll withholdings. Therefore, analysts are taking the spike in stride and not with fear that wage inflation is a threat.

The second report of the day also gave us a stronger than expected reading. The revised reading to the University of Michigan Index of Consumer Sentiment for June came in at 70.8. This was nearly two points higher than forecasts and indicates that consumers were more optimistic about their own financial situations than earlier thought. That is considered negative news for bonds because rising sentiment usually means consumers are more apt to make large purchases in the near future, fueling economic activity.

Yesterday’s 7-year Treasury Note sale was also met with a strong demand from investors. Wednesday’s 5-year sale went well, helping to set the stage for yesterday’s sale. This helped boost bond prices during afternoon trading and eases some concerns about the supply of debt being sold by the Fed, at least temporarily.

Next week is likely to be a very active week for the markets and mortgage rates. There is no relevant data scheduled for release Monday and the markets are closed Friday in observance of the Independence Day holiday. But, in between are several relevant and important reports with one of them being the almighty monthly Employment report. Look Sunday’s weekly preview to detail those reports and their potential impact on mortgage pricing.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Mortgage Rate Commentary 06-24-2009

2009-06-24T08:17:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Wednesday’s bond market has opened down slightly following early stock gains and a much stronger than expected manufacturing report. The stock markets are showing early strength with the Dow up 98 points and the Nasdaq up 38 points. The bond market is currently down 4/32, but we will likely still see an improvement of approximately .125 of a discount point in this morning’s mortgage rates due to gains late yesterday.

The Commerce Department reported this morning that Durable Goods Orders rose 1.8% last month. This was much stronger than the 0.9% decline that was expected and the third increase in orders out of the past four months. This indicates that manufacturing activity, at least in big-ticket items such as machinery, vehicles and electronics, is strengthening quicker than many had thought. This would be considered bad news for bonds and mortgage rates.

May’s New Home Sales was also released this morning, showing that sales of newly constructed homes fell slightly last month. Analysts were expecting to see a small increase in sales. However, this data only represents approximately 25% of all home sales, so its impact on trading and mortgage rates is usually minimal unless its results vary greatly from forecasts.

This week’s FOMC meeting will adjourn at 2:15 PM ET today. It is widely expected that Mr. Bernanke and company will not change key short-term interest rates at this meeting. But, market participants will be looking at the post-meeting statement for any hint of what and when the Fed’s next move may be. Look for an update to this report shortly after the markets have an opportunity to react to what the Fed says.

The only relevant economic data scheduled for release tomorrow is the final reading to the1st Quarter GDP and weekly unemployment claims. The GDP data is quite aged now (covers January through March) and will likely have little impact on the bond market or mortgage pricing unless it varies greatly from previous readings. Last month’s first revision showed a 5.7% decline in the GDP. This month’s second and final revision is expected to show the same decline.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Mortgage Rate Commentary

2009-06-23T08:46:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Tuesday’s bond market has opened in positive territory again after this morning’s economic data showed weaker than expected results and the stock markets are posting early losses. The major stock indexes are in negative ground with the Dow down 35 points and the Nasdaq down 8 points. The bond market is currently up 10/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

The National Association of Realtors announced this morning that home resales rose 2.4% last month. This was an increase from April’s sales, but was a smaller rise than analysts had expected. This indicates that the housing sector did improve last month, but at a slower pace than many had thought. Generally speaking, a softening housing sector makes an economic recovery that much more difficult, which helps to keep bonds more attractive to investors. However, this particular data is not considered to be one of the more important reports we see each month. Therefore, its impact on trading and mortgage rates is usually fairly minimal.

This week’s FOMC meeting began today but will not adjourn until tomorrow afternoon. It is widely expected that Mr. Bernanke and company will not change key short-term interest rates at this meeting. But, as we have seen so many times in the past, it is the post meeting statement that often creates the most volatility in the markets. They could give an opinion of the overall economy or inflation, hinting at a possible future move or lack of one. Statements like these could cause a knee-jerk reaction in the markets and possibly mortgage pricing tomorrow afternoon.

May’s Durable Goods Orders is the more important of tomorrow’s two reports. It gives us an indication of manufacturing sector strength by tracking orders for big-ticket items or products that are expected to last three or more years. This data is known to be quite volatile from month to month and is expected to show a decline of 0.9% in new orders from April to May. A larger decline would be the ideal scenario for the bond market and could lead to a decline in mortgage pricing tomorrow.

Also tomorrow is the release of May’s New Home Sales that is similar to today’s Existing Home Sales report. This report tells us how well sales of newly constructed homes were last month. It is also expected to show a rise in sales, but will likely not have much of an impact on mortgage rates because this data is considered to be of low importance to the markets.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Mortgage Rate Commentary 06/22/2009

2009-06-22T09:23:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Monday’s bond market has opened in positive territory following heavy selling in stocks. The stock markets are starting the week with the Dow down 135 points and the Nasdaq down 43 points. The bond market is currently up 16/32, which should improve this morning’s mortgage rates approximately .375 - .500 of a discount point over Friday’s morning rates.

There is no relevant economic news scheduled for release today. Tomorrow brings us the first data with the release of May’s Existing Home Sales report. The National Association of Realtors will give us figures on last month’s home resales. This data helps us measure housing sector strength and mortgage credit demand, but it is one of the lesser important reports of the week. It is expected to show an increase in sales from April to May.

The FOMC meeting that begins tomorrow will adjourn Wednesday afternoon. It is widely expected that Mr. Bernanke and company will not change key short-term interest rates at this meeting. But, as we have seen so many times in the past, it is the post meeting statement that often creates the most volatility in the markets. They could give an opinion of the overall economy or inflation, hinting at a possible future move or lack of one. Statements like these could cause a knee-jerk reaction in the markets and possibly mortgage pricing Wednesday afternoon.

Overall, there are six reports scheduled for release this week in addition to the FOMC meeting. The most active day should be Wednesday due to the importance of the data and FOMC meeting. Friday’s news may also affect mortgage rates, but likely not as much as earlier days. This would definitely be a good week to maintain constant contact with your mortgage professional.

Also worth noting is the fact that the Fed will be selling $104 billion in new debt this week. These sales may influence trading enough to affect mortgage rates. There are sales every day except Friday but the two most likely to affect rates are Wednesday and Thursday’s sales. If they are met with a strong demand, we could see bond prices rise some during afternoon trading. This could lead to afternoon improvements to mortgage rates. But, if the sales draw a lackluster interest from investors, mortgage rates may move higher during afternoon trading.

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...

©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

This weeks Mortgage Market 06-21-2009

2009-06-22T05:02:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week will likely prove to be very active in terms of mortgage rate movement due to the economic data and other events that are scheduled. There are six economic reports scheduled for release, but in addition to the data another Federal Open Market Committee (FOMC) meeting will be held and another round of Treasury sales are on the calendar. Together, we have the makings of a potentially volatile week in the financial and mortgage markets.

There is no relevant economic news scheduled for release tomorrow. Tuesday brings us the first data with the release of May’s Existing Home Sales report. The National Association of Realtors will give us figures on home resales. This data helps us measure housing sector strength and mortgage credit demand, but it is one of the week’s less important reports. It is expected to show an increase in sales from April to May. The only important release scheduled for Wednesday is May’s Durable Goods Orders, which gives us an indication of manufacturing sector strength. It is known to be quite volatile from month to month and is expected to show a decline of 0.5% in new orders from April to May. A larger decline would be the ideal scenario for the bond market and could lead to a decline in mortgage pricing Wednesday.

Also Wednesday is the release of May’s New Home Sales that is similar to Tuesday’s Existing Home Sales report. This report tells us how well sales of newly constructed homes were last month. It is also expected to show a rise in sales, but will likely not have much of an impact on mortgage rates because this data is considered to be of low importance to the markets. The FOMC meeting that begins Tuesday afternoon will adjourn Wednesday afternoon. It is widely expected that Mr. Bernanke and company will not change key short-term interest rates at this meeting. But, as we have seen so many times in the past, it is the post meeting statement that often creates the most volatility in the markets. They could give an opinion of the overall economy or inflation, hinting at a possible future move or lack of one. Statements like these could cause a knee-jerk reaction in the markets and possibly mortgage pricing Wednesday afternoon.

The only relevant economic data scheduled for release Thursday is the final reading to the1st Quarter GDP and weekly unemployment claims. The GDP data is quite aged now (covers January through March) and will likely have little impact on the bond market or mortgage pricing unless it varies greatly from previous readings. Last month’s first revision showed a 5.7% decline in the GDP. This month’s second and final revision is expected to the same decline. May’s Personal Income and Outlays data will be posted Friday morning. This report gives us an indication of consumer ability to spend and current spending activity. Analysts are expecting to see an increase of 0.2% in income and a 0.4% rise in the spending portion of the report. Smaller than expected increases should be good news for the bond market and mortgage rates.

The second report of the day and the last important data of the week will come from the University of Michigan who will update their Index of Consumer Sentiment for May. An upward revision would be considered a negative for bonds. Also worth noting is the fact that the Fed will be selling $104 billion in new debt this week. These sales may influence trading enough to affect mortgage rates. There are sales every day except Friday but the two most likely to affect rates are Wednesday and Thursday’s sales. If they are met with a strong demand, we could see bond prices rise some during afternoon trading. This could lead to afternoon improvements to mortgage rates. But, the sales draw a lackluster interest from investors, mortgage rates may move higher during afternoon trading.

Overall, tomorrow will likely be the quietest day of the week. The most active should be Wednesday due to the importance of the data and FOMC meeting. Friday’s news may also affect mortgage rates, but likely not as much as earlier days. This would definitely be a good week to maintain constant contact with your mortgage professional.

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...
©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

This weeks mortgage market

2009-06-01T04:53:00.000-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

This week brings us the release of a couple important pieces of economic data in addition to some moderately important reports. The first data is April's Personal Income and Outlays data at 8:30 AM tomorrow. This report gives us an indication of consumer ability to spend and current spending habits. An increase in income means that consumers have more money available to spend. Since consumer spending makes up two-thirds of the U.S. economy, this data can cause movement in the financial markets and mortgage rates. Current forecasts are showing a 0.2% decline in income and spending. Weaker readings would be considered good news for bonds and mortgage rates.

The Institute for Supply Management’s (ISM) manufacturing index will be posted late tomorrow morning. This highly important index measures manufacturer sentiment. A reading below 50 means that more surveyed manufacturing executives felt that business worsened during the month than those who felt it had improved. Analysts are expecting to see a 42.0 reading in this month's release, meaning that sentiment strengthened slightly during May. A smaller reading will be good news for the bond market and mortgage shoppers while an unexpected increase could contribute to higher mortgage rates tomorrow. There is no relevant data due to be posted Tuesday, but Wednesday has two reports scheduled for release. The first and possibly the only relevant news is the Commerce Department’s release of April's Factory Orders data late morning. This manufacturing sector report is similar to last week's Durable Goods Orders release, but also includes orders for non-durable goods. It can cause some movement in the financial markets if it varies from forecasts by a wide margin, but it isn’t expected to cause much change in rates this month. Current forecasts are expecting to see an increase in orders of 0.3%.

The second report of the day may have a noticeable impact on the markets or be a non-factor depending on its results. The Institute for Supply Management will release its services index late Wednesday morning. It is expected to show a reading of 45.0, with the same principals as Monday’s manufacturing index. If this reading varies greatly from forecasts, we may see volatility in the markets and mortgage rates. However, if its results are in the general area of expectations, it will likely have no influence on the markets and mortgage pricing.

The revised 1st Quarter Productivity and Costs report will be released Thursday morning. This data measures employee output and employer costs for wages and benefits. It is considered to be a measurement of wage inflation. It is believed that the economy can grow with low inflationary pressures when productivity is high. Last month’s preliminary reading revealed a 0.8% rate, but I don’t think this piece of data will have much of an impact on the bond market or mortgage pricing unless it varies greatly from its forecasted revised reading of 1.2%.

Friday’s sole report is arguably the single most important report that we see each month. The Labor Department will post May's Employment data early Friday morning. This report gives us key employment readings such as the U.S. unemployment rate and the number of jobs added or lost during the month. Analysts are expecting to see the unemployment rate climb to 9.2% with approximately 550,000 jobs lost during the month. A higher than expected increase in the unemployment rate and a larger drop in payrolls would be great news for the bond market. It would probably create a sizable rally in bonds, leading to lower mortgage rates Friday. However, stronger than expected numbers may lead to a spike in mortgage rates Friday.

Overall, tomorrow or Friday are likely to be the most important days of the week as they bring us the two most important reports on the agenda. If they give us weaker than expected results, we will probably close the week with lower mortgage rates than tomorrow’s opening levels. However, if we see stronger than expected readings in those two releases, I expect mortgage rates to move higher on the week.

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...

©Mortgage Commentary 2009

* Please note that if you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com

Mortgage Rate Commentary- 05/29/2009

2009-05-29T09:53:00.001-07:00

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!

Friday’s bond market has opened in positive territory after this morning’s economic news failed to give us any significant surprises. The stock markets are showing minor losses with the Dow down 18 points and the Nasdaq down 5 points. The bond market is currently up 10/32, which should improve this morning's rates by approximately .250 - .375 of a discount point.

The more important of today’s two reports was the revision to the 1st quarter Gross Domestic Product (GDP). It showed that the economy contracted at an annual pace of 5.7% during the first three months of the year. This was an upward revision from the previous estimate, but was slightly weaker than the 5.5% decline that was forecasted. This means that economic activity was stronger than previously announced, but was not as strong as analysts' revised forecasts. This basically is good news for bonds, however, the amount of the variance was not enough to heavily influence trading or mortgage pricing this morning.

The University of Michigan updated their Index of Consumer Sentiment for May late this morning. They said the index stood at 68.7 compared to the 67.9 that was previously announced. This means that consumers were a little more optimistic about their own financial situations than was expected. That can be considered negative news for bonds, but as with the GDP revision, the results were not enough to affect mortgage rates.

Next week is packed with relevant economic data for the markets to digest. It begins with two reports Monday morning that are relevant to bonds and mortgage pricing. Early Monday morning we will see April’s Personal Income and Outlays data that will give us a measurement of consumers’ ability to spend and their current spending habits. It is expected to show a decline in both readings.

The Institute for Supply Management (ISM) will post their manufacturing index late Monday morning. This is a fairly important report because it measure manufacturer sentiment. It is expected to show a slight increase from March’s reading, indicating that more surveyed manufacturers felt business improved this month than the last month.

Look for more details on next week’s data and events in Sunday’s weekly preview. It will likely be a pretty active week for mortgage rates with relevant data being posted four out of the five days.

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...

©Mortgage Commentary 2009

* Please note that if you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details.