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
Monday, August 31, 2009
Mass Mortgage Rate Commentary week of 8/30/09
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
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
Friday, August 28, 2009
Massachusetts Mortgage Rate Commentary 08/28/09
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
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
Thursday, August 27, 2009
Massachusetts Mortgage Rate Commentary 08/27/2009
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
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
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
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
Monday, August 24, 2009
Massachusetts Mortgage Rate Commentary 08-24-2009
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
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
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
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
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