Monday, November 29, 2010

Rate watchers begin the week focused on Korea and EU


Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term - At any point less than 15 days, I would LOCK. More than 15 days, I would recommend LOCKING unless your risk tolerance permits calmness in the face of severe volatility. In this case, I would FLOAT and LOCK an ANY gains.

Long-term - LOCK on ANY price improvements as windows for improvement will be small and fleeting.

The week ahead for economic data that can affect mortgage interest rates

Tuesday

  • Case/Schiller 20 City Home Price Index
  • Chicago Purchasing Manager's Index

Wednesday

  • Weekly MBA Mortgage Applications
  • ADP Employment Data
  • Q3 Productivity
  • Q3 Labor Unit Costs
  • November ISM Manufacturing Index
  • November Auto and Truck Sales
  • Fed's Beige Book (Report on the economy)

Thursday

  • Weekly Jobless Claims
  • October Pending Home Sales

Friday

  • November Employment Data
  • November ISM Service Sector Index

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