News for Prescott AZ - AmericanTowns.com

Monday, July 05, 2010

Weekly Rate Lock Advisory

 

Rate Lock Advisory - Sunday Jul. 4th



This holiday-shortened week brings us little economic data to drive the markets and mortgage rates. There are no reports scheduled this week that can be considered important. This makes it quite likely that the stock markets will have the biggest influence on the bond market and mortgage pricing the next several days.

The first piece of data comes late Tuesday morning when the Institute for Supply Management (ISM) will post their Services Index for June. This index is somewhat similar to last week's ISM Manufacturing Index but tracks sentiment at the services level. It has the potential to impact bond trading and mortgage rates if it shows a sizable variance from forecasts, particularly when little other data is being posted. However, it usually has little influence on mortgage pricing and cannot be considered a key report. Current forecasts are calling for a reading of 55.0, which would be a small decline from May's reading.

The only other ec onomic data worth mentioning is Thursday's weekly unemployment figures from the Labor Department. This release usually has little influence on bond trading or mortgage rates, but with a lack of important data scheduled for release this week it may draw more attention than usual. Analysts are expecting to see that approximately 460,000 new claims for benefits were filed last week. The higher the total of new claims, the better the news for bonds and mortgage rates.

Overall, I am expecting to see a fairly quiet week in mortgage rates, especially if comparing to recent weeks and the stock markets don't rally or go into a sell-off. The U.S. financial and mortgage markets are closed tomorrow in observance of the Independence Day holiday. They will reopen Tuesday morning for regular trading hours, but with little data and no other relevant events on tap this week, it is difficult to say which day will be the most important of the week.

If I were cons idering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

 

This is not the opinion of Brad Bergamini, Realty Executives Northern Arizona or any of its affiliates.  This post is for informational purpose only and is not guaranteed and does not render as legal advice.  Buying and selling Real Estate in Arizona or Prescott Arizona is a serious task and should be consulted with personally with Realtor or Real Estate Attorney.  Please visit my website for contact information

http://bradbergamini.com

 

 

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