News for Prescott AZ - AmericanTowns.com

Monday, August 31, 2009

Bonds Battle Extreme Resistance

I LOVE THESE ARTICLES FROM THE mmg.

For the week of Aug 31, 2009 --- Vol. 7, Issue 35

 

 

 

Last Week in Review

 

 

"I DON'T KNOW WHY I GO TO EXTREMES." Billy Joel. Last week, Bonds went to the extremes of their trading range, battling tough layers of technical resistance as they attempted to improve. Let's take a closer look, and understand the news of the week.

There was good news on the inflation front as the Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditure Index (PCE), indicated that inflation remained tame last month. Generally tame inflation is a good sign for Bonds - but there is still concern, as inflation is certainly coming...it's just a matter of when.

-----------------------
Chart: Core Personal Consumption Expenditure Index

As part of that same report, Personal Income and Spending were both reported inline with expectations. Interestingly enough, consumer spending has now risen three months in a row. However, this needs to be taken with a grain of salt, as this boost comes on the heels of the Government's "Cash for Clunkers" program, which likely boosted spending statistics. Until the labor market stabilizes, we won't likely see a meaningful pickup in consumer spending. Speaking of the consumer, the Consumer Sentiment Index was also reported in line with expectations.

There was also more good news on the housing front last week. The Case-Shiller Home Price Index showed home prices rose for the second straight month while New Home Sales surged 9.6% in July from June's reading, signaling that the housing market is stabilizing. Adding to the positive tone of the report was a drop in inventories, which now stands at a 7.5-month supply from last month's 8.8 month reading.

Keep in mind that some of the current buyers are adding a bit of what may be an artificial boost to the housing numbers, as they normally would have purchased in 2010 but have moved up their buying decisions to take advantage of tax credits and historically low rates. Let me know if you would like more information on these time-sensitive tax credits.

It's also important to note that the revised second Quarter Gross Domestic Product Report showed that the economy has now contracted for four consecutive quarters for the first time since the Great Depression. This is another area to watch in the coming months as we gauge the pace of recovery.

Remember, positive economic news typically causes money to flow from Bonds to Stocks, causing Bonds and home loan rates to worsen. However, even with the pressure of more supply from last week's Treasury auctions, Bonds and home loan rates were able to hold on to some improvements and end the week very slightly better than where they began.

SITTING IN A PLANE ON THE TARMAC FOR HOURS IS AN EXTREME SITUATION NONE OF US WANTS TO EXPERIENCE! CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME GREAT INFORMATION ON PASSENGER RIGHTS.

 

Forecast for the Week

 

 

Friday will be a big day this week, and not just because people will be getting ready to celebrate the Labor Day Holiday. The Labor Department's Jobs Report for August will be released at 8:30am ET. July's report showed glimmers of hope for an improving job market: 247,000 jobs lost in July versus economists' expectations of 328,000 jobs lost, the smallest loss since August 2008. Even better, the Unemployment Rate dropped to 9.4%, from the prior month's reading of 9.5%, which broke a streak of 9 straight monthly increases. It will be important to see if these trends continue.

Speaking of the job market, it will also be important to keep an eye on Thursday's weekly Initial Jobless Claims Report. The recent trend of higher than expected Claims is disappointing after what appeared to be a steady decline in Claims earlier this summer. We'll want to take notice on Wednesday of the Meeting Minutes from the latest Federal Open Market Committee meeting. Any comments regarding future inflation could move the markets.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates faced an extremely tough triple layer of resistance at the end of last week. With no Treasury auctions ahead this week, I will be watching closely to see if Bonds and rates can bust through this resistance and improve any further.

Chart: Fannie Mae 4.5% Mortgage Bond (Friday Aug 28, 2009)

Japanese Candlestick Chart

 

The Mortgage Market View...

 

 

Stranded on the Tarmac...What Should You Do If It Happens to You?

Earlier this month, a Continental Airlines flight stranded passengers on the tarmac for 6 hours. A couple weeks after that, passengers on a Sun Country flight also sat on the tarmac for a grueling 6 hours.

For proof that these aren't isolated incidents, you only have to look back in history to similar situations. In 1999, Northwest Airlines stranded a plane on the tarmac for 8 hours. American Airlines also stranded passengers for 8 hours in 2006. In 2007, JetBlue held passengers on the tarmac for 11 hours. In many of these cases, passengers were stuck on planes with no food or water-not to mention terrible odors coming from the cramped airplane bathrooms.

But what can you do if you're on a flight that gets stranded on the tarmac? The information below describes what you can do to be prepared and make sure your voice is heard.

Know Your Rights

As a result of long delays years ago, the Air Transport Association-which includes Delta, United, Continental, Southwest, and other airlines as members-released a Customer Service Plan stating that airlines will:

  • Notify passengers of known flight delays and cancellations
  • Meet customers' essential needs during long on-aircraft delays
  • Allow reservations to be held or tickets to be refunded within 24 hours of purchase
  • Be more responsive to customer complaints

The details of the self-governed Customer Service Plan should be posted on each airline's website. So, before you head to the airport, take a minute to review the airline's specific details regarding this plan.

You can check out the Air Transport Association's website for links to specific airlines. If the airline you're flying on isn't listed on that website, you may be able to find a customer's bill of rights on the corporate website. For instance, JetBlue offers a detailed bill of rights on its website for customers.

What Can You Do?

The national debate is gaining momentum and now's the time to make sure your voice is heard. There are a number of ways that you can join the discussion.

You may want to join the effort to put more stringent rules onto the law books. For example, the Coalition for Airline Passenger's Bill of Rights has proposed a set of rights to be written into law, including a requirement that airlines "establish procedures for returning passengers to terminal gate when delays occur so that no plane sits on the tarmac for longer than three hours without connecting to a gate." You can view the proposed Bill of Rights on FlyersRights.org.

In addition, you can sign a Petition for the Airline Passenger Bill of Rights. You can also contact your Senators and Representative in Congress to make sure they take this issue seriously and work to protect airline passengers' rights. If you don't know how to contact your Senators and Representative, you can quickly find their names, telephone numbers, and websites by typing your zip code into the Congressional Directory on CongressMerger.com.

Finally, if you do experience a horror story on the tarmac, you can submit a complaint form to make sure the incident is recorded.

Be Prepared Before You Fly

Before you get on your next flight, visit FlyersRights.org to download and print two important documents that you can carry on the plane.

The first document is the Emergency Kit Document, which lists items you should have handy on your next flight. The second document is the Stranded Passenger Survival Guide, which features information on what you can do if your plane is stranded on the tarmac for an unreasonable amount of time.

It all comes down to taking some time before you fly to know your rights, be prepared, and take part in the conversation. Have a safe, comfortable flight.

 

The Week's Economic Indicator Calendar

 

 

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of August 31 - September 04

Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Mon. August 31

09:45

Chicago PMI

Aug

47.2

 

43.4

HIGH

Tue. September 01

10:00

ISM Index

Aug

50.2

 

48.9

HIGH

Wed. September 02

08:15

ADP National Employment Report

Aug

-246K

 

-371K

HIGH

Wed. September 02

08:30

Productivity

Q2

6.1%

 

6.4%

Moderate

Wed. September 02

10:30

Crude Inventories

8/28

NA

 

+128K

Moderate

Wed. September 02

02:00

FOMC Minutes

8/12

 

 

 

HIGH

Thu. September 03

10:00

ISM Services Index

Aug

48.0

 

46.4

Moderate

Thu. September 03

08:30

Jobless Claims (Initial)

8/29

570K

 

570K

Moderate

Fri. September 04

08:30

Average Work Week

Aug

33.1

 

33.1

HIGH

Fri. September 04

08:30

Hourly Earnings

Aug

0.1%

 

0.2%

HIGH

Fri. September 04

08:30

Non-farm Payrolls

Aug

-225K

 

-247K

HIGH

Fri. September 04

08:30

Unemployment Rate

Aug

9.5%

 

9.4%

HIGH

 

 

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

 

Equal Housing Lender          

 

Inside Lending Newsletter From Theron Wall

 

For the week of August 31, 2009 – Vol. 7, Issue 35

>> Home Base

INFO THAT HITS US WHERE WE LIVE  We continue to see signs of improvement in the housing market and last week showed us a surprising 9.6% increase in new single-family home sales for July. This was their steepest percent rise since 2005. New home sales are now at a 433,000 annual rate, up 31.6% from their January low. Even more significantly, inventory of unsold new homes plummeted to a 7.5 month supply from their 8.5 month level in June. This put inventories at 271,000, down over 52% from their mid-2006 peak, and at their lowest level since 1993. New home sales have now been up 4 months in a row, increasing since March at an annualized rate of more than 121%!

Prior to this good news, the Case-Shiller home price index reported a quarterly rise in prices for the first time in three years. The index also posted its second straight monthly increase, up 1.4% for the 20 metro areas it tracks. The Federal Housing Finance Agency's purchase-only index had home prices up 0.5% in June following a 0.6% rise in May. The FHFA index is up 0.5% for the first six months this year. Agency chief Edward J. DeMarco said: "This is further evidence that prices may be stabilizing for the nation as a whole."

Finally, the Mortgage Bankers Association reported mortgage applications for home purchases were up 1.0% last week over the week before. This was the fourth consecutive weekly gain for home-purchase applications.

>> Review of Last Week

UP A LITTLE MORE... The Dow went up eight days in a row before it slipped just 36 points on Friday. This was the venerable index's longest uninterrupted advance in over two years and, despite the small drop on Friday, it was still UP 0.4% for the week!

Tuesday saw consumer confidence come in at 54.1, way higher than the previous 47.4 reading. And Friday, the University of Michigan consumer sentiment for August hit 65.7, up nicely sfrom last month's 63.2. We also had durable goods orders up a healthy 4.9% for July. For the past three months there have been gains in these orders that are now showing up as increased shipments, which will boost Q3 GDP. As far as Q2 GDP is concerned, last week's preliminary reading was unchanged from the advanced reading of –1.0% and better than the expected –1.5%. This was helped by a consumer spending decline that was smaller than anticipated. Yay!

Please note that corporate profits in Q2 grew at an annual rate of 24.9%, following their 22.8% growth rate in Q1. And all the Q2 profit growth came from US operations, not revenues earned overseas. Some analysts feel it won't be long before these profits go into more US business investment and hiring. New claims for unemployment insurance dropped by 10,000 and continuing claims fell by 119,000. Finally, President Obama nominated Ben Bernanke for a second term as Fed Chairman, a move investors expected.

For the week, the Dow was UP 0.4%, to 9544.20; the S&P 500 inched UP 0.3%, to 1028.93; while the Nasdaq ended UP 0.4%, to 2028.77.

Bond prices did pretty well for the week, in spite of the big auction offerings that could have depressed prices but didn't. In fact, the price of the FNMA 30-year 4.5% bond we follow edged up from the previous week's $99.69 close, ending at $100.19. Mortgage interest rates were up slightly for the week, but still well within the historically low levels they've been at all year.

>> This Week's Forecast

THE FACTORIES, THE FED, THE JOBS... Well, the start of the week features two good looks at the state of manufacturing, with the Chicago PMI and the ISM Index. Midweek, the FOMC Minutes should shed some light on the Fed's view of the economy at their last meeting. Then the week ends big with the August employment report. Many economic indicators are now picking up, but the jobs picture is always the last to brighten. Will we see some glimmers in the data?

>> The Week's Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of August 31 – September 4

 Date

Time (ET)

Release

For

Consensus

Prior

Impact

M
Aug 31

09:45

Chicago PMI

Aug

47.2

43.4

HIGH

Tu
Sep 1

10:00

ISM Index

Aug

50.2

48.9

HIGH

W
Sep 2

08:30

Productivity–Rev.

Q2

6.1%

6.4%

Moderate

W
Sep 2

10:30

Crude Inventories

8/28

NA

+128K

Moderate

W
Sep 2

14:00

FOMC Minutes

8/12

NA

NA

HIGH

Th
Sep 3

08:30

Initial Jobless Claims

8/29

570K

570K

Moderate

Th
Sep 3

10:00

ISM Services

Aug

48.0

46.4

Moderate

F
Sep 4

08:30

Average Workweek

Aug

33.1

33.1

HIGH

F
Sep 4

08:30

Hourly Earnings

Aug

0.1%

0.2%

HIGH

F
Sep 4

08:30

Nonfarm Payrolls

Aug

–225K

–247K

HIGH

F
Sep 4

08:30

Unemployment Rate

Aug

9.5%

9.4%

HIGH

 

>> Federal Reserve Watch   

Forecasting Federal Reserve policy changes in coming months. Virtually all economists feel there's very little chance the Fed will be raising the funds rate any time soon. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on:

Consensus

Sep 23

0%–0.25%

Nov 4

0%–0.25%


Probability of change from current policy:

After FOMC meeting on:

Consensus

Sep 23

1%

Nov 4

3%

 

This e-mail is an advertisement for Theron Wall. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is copyrighted by Wallick & Volk Mortgage and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of Wallick & Volk Mortgage.

.
Equal Housing Lender

 

Sunday, August 30, 2009

Weekly Rate Lock Advisory

From Rate Lock Advisory from Pacific Coast Mortgage, Inc  - Sunday Aug. 30th

THIS DOES NOT NECESSARILY REFLECT THE VIEWS OF OUR BROKER REALTY EXECUTIVES NORTHERN ARIZONA OR THAT OF THE BERGAMINI GROUP



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 2 008 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 downward change from the previous estimate of a 6.4% annual pace. Forecasts are currently calling for a reading of 6.1%. A larger than expected reading would be considered good news for bonds and mortgage rates.

Also Wednesday morning comes July's Factory Orders data. This report measures manufacturing sector strength and is similar to last week's Durable Goods Orders, but includes orders for both durable and non-durable goods. This data is expected to show a 1.5% increase in new orders. A smaller than expected rise should lead to lower mortgage rates Wednesday, as long as the productivity number doesn't hurt bond prices.





The third and final event for Wednesday is the release of the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member's views on the economy and inflation and if they will hint what the Fed's next move may be. But this is one of those events that can cause significant movement in rates after its release or be a non-factor. It generally causes a little movement in bond prices but not enough to significantly affect mortgage pricing.

The big news of the week comes Friday morning. The Labor Department will post the unemployment rate, number of new jobs added or lost and average hourly earnings for August early Friday. The ideal scenario for the bond market and mortgage rates is rising unemployment, a larger than expected drop in payrolls and earnings to remain unchanged ed. Analysts are expecting to see that the unemployment rate moved from 9.4% to 9.5% and that 225,000 jobs were lost during the month. Weaker than expected readings would be very good news for bonds and lead to lower mortgage rates Friday. However, if we get stronger than expected numbers, mortgage rates will probably spike higher Friday.

Overall, I expect to see the most movement in rates Friday, but Tuesday and Wednesday should also be fairly active. Tomorrow or Thursday will likely be the calmest day due to the lack of any monthly or quarterly data being posted. Also worth mentioning though is the fact that next Monday is Labor Day so all markets will be closed. The bond market will not close early this Friday, but many traders may head home for the long weekend after Friday's data is posted. This means that trading will likely be thin Friday afternoon even though the markets will still be open. This could lead to additional volatility in rates as traders prepare for the long weekend, so please be careful this week 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... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2009

 

 

Thursday, August 27, 2009

Back on Market and Priced like a foreclosed Property.

This was sent to the agents in the Prescott area... I can't drive it home enough for my clients.

The other guy wants to sell more than you.

 

 

Back on the market and Priced like a foreclosed Property, but it is

not!!  $165,000 Please bring all buyers to this 1610 Sq ft home in

Prescott Valley.  3bd/2bth/2cg Owners need to move and are now willing

to almost give away their home to move on with their lives. please

help them out.  

 

--

 

Legislation Shift Affecting Agents

New Law that will affect us all in AZ


H.R. 3648 became Public Law on 12/20/2007.

(This measure has not been amended since it was passed by the Senate on December 14, 2007. The summary of that version is repeated here.)

Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge, prior to January 1, 2010, of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and taxpayers who are insolvent.

Extends through 2010 the tax deduction for mortgage insurance premiums.

Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders.

Allows members of a qualified volunteer emergency response organization (i.e., an organization that provides firefighting and emergency medical services) an exclusion from gross income for state and local tax benefits and for certain payments for services. Terminates such exclusion after 2010.

Allows certain full-time students who are single parents and their children to live in housing units eligible for the low-income housing tax credit provided that their children are not dependents of another individual (other than a parent of such children).

Allows a surviving spouse to exclude from gross income up to $500,000 of the gain from the sale or exchange of a principal residence owned jointly with a deceased spouse if the sale or exchange occurs within two years of the death of the spouse and other ownership and use requirements have been met.

Increases the penalty for failure to file a partnership tax return and extends from five to 12 the number of months in which such penalty may be imposed. Limits disclosure of tax return information that includes individual taxpayer identify information.

Imposes an additional penalty on S corporations for failure to file required tax returns.

Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase the estimated tax payment due in the third quarter of 2012 for corporations with assets of at least $1 billion.

Program 3648 is privately sponsored nationwide initiative to help homeowners take advantage of the Mortgage Forgiveness Debt Relief Act of 2007 which has been extended through 2012 through the Emergency Economic Stabilization Act of 2008.


Monday, August 24, 2009

The HouseMaster eNewsletter


HOUSEMASTER.COM HOME OWNERSHIP ENEWSLETTER
August 2009
Welcome to the most informative news source for homeowners!
___________________________________________________________________
IN THIS ISSUE


MANIFOLD PLUMBING SYSTEMS
A future trend -- what is it?
  http://enewsletter.housemaster.com/8_2009.html

BACK UP YOUR SUMP PUMP
Be prepared for sump pump problems and power failures.
  http://enewsletter.housemaster.com/8_2009.html

BUYER BEWARE: ADD-ON WARRANTIES
Carpenter bees don't build houses, but they may be using your house as a nesting place.
  http://enewsletter.housemaster.com/8_2009.html

ALL A BUZZ ABOUT BEES!
Carpenter bees don't build houses, but they may be using your house as a nesting place.
  http://enewsletter.housemaster.com/8_2009.html

QUESTIONS AND ANSWERS
Get the lowdown on grout maintenance, the value of insulating under vinyl siding, how to take care of stainless steel fixtures, and ways to keep water out of a basement with a stone foundation.
  http://enewsletter.housemaster.com/8_2009.html


Weekly Rate Lock Advisory

 

Rate Lock Advisory - Sunday Aug. 23rd



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 th e 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 U niversity 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... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

 

 

Brad Bergamini, real estate agent on Zillow

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