Mortgage rates improve at start of short trading week

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 - LOCK if closing in 7 or fewer days. FLOAT with extreme caution if closing between 7 and 15 days.

Long-term - FLOAT, but LOCK on ANY price improvements as window for securing best rates will be small and fleeting.

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

Wednesday

• Q3 GDP
• November Existing Home Sales
• FHFA October Home Price Index

Thursday

• Weekly Jobless Claims
• November Personal Income and Spending
• November Durable Goods Orders
• University of Michigan Consumer Sentiment Index
• November New Home Sales

Rates flirt with 5%

This week in mortgage interest rates could have been worse. While we started with another upward climb, rates for Fannie Mae and Freddie Mac mortgages retreated a bit by Thursday. Based on the extreme pain of the last 30 or so days, this was jump up and kick your heels together news.

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Rates Begin Week Positively As Market Corrects

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 (No Change) - LOCK

Long-term - (No Change) 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

• November PPI
• November Retail Sales
• October Inventories
• FOMC Policy Statement

Wednesday

• Weekly MBA Mortgage Applications
• November CPI
• December NY Manufacturing Index
• November Industrial Production
• November Capacity Utilization
• December NAHB Housing Market Index

Thursday

• Weekly Jobless Claims
• November Housing Starts
• November Building Permits
• December Philadelphia Fed Business Index

Friday

• November Leading Market Indicators

Mortgage rates begin week flat as bond market corrects from oversold levels

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 (No Change) - 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 - (No Change) 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

• $32 Billion 3 Year Treasury Auction
• October Consumer Credit

Wednesday

• Weekly MBA Mortgage Applications
• $21 Billion 10 Year Treasury Auction

Thursday

• Weekly Jobless Claims
• October Wholesale Inventories
• $13 Billion 30 Year Treasury Auction

Friday

• October Trade Balance
• November Import and Export Prices
• University of Michigan Mid-Month Consumer Sentiment Report
• November Treasury Budget

This week, I do believe that a little levity is in order. So, without further ado:

A large passenger train was crossing the country. After they had gone some distance, one of the two engines broke down.

“No problem,” the engineer thought and carried on at half power. Farther on down the line, the other engine broke down and the train came to a standstill.

The engineer decided he should inform the passengers about why the train had stopped, and made the following announcement, “Ladies and gentlemen, I have some good news and some bad news. The bad news is that both engines have failed, and we will be stuck here for some time. The good news is that you’re not in an airplane.”

As you can likely guess, the bond market is the train and the engines driving the low rates have definitely broken down.

Read My Entire Article

Please note that after this article was posted, employment data was released and the results greatly disappointed. Rates, however, have not reacted favorably as we would generally expect.

Mortgage Rates Open Flat on a Short Trading Week

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 - FLOAT, but look to LOCK on any gains.

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

Monday

• $25 Billion 2-Year Treasury Auction

Tuesday

• October Existing Home Sales
• $35 Billion 5-year Treasury Auction
• 11/3 FOMC Meeting Minutes

Wednesday

• October Personal Income and Spending Report
• October Durable Good Report
• Weekly Jobless Claims
• University of Michigan Consumer Sentiment Index
• October New Home Sales
• $25 Billion 7-year Treasury Auction

Hooked on Some Easing

Since this week was much like the last few, I figured that would spice things up with a musical interlude. Because I cannot sing well enough to do this justice, I would ask that you use some good imagination.

Hooked on Some Easing
(Sung to Hooked on a Feeling)

See the song and read more

Mortgage Rate Lock Advice 11/1 - Rates open weak, but hope for favorable Fed policy could bring lower rates and lock opportunity

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 - LOCK if less than 7 days out from closing, but if between 7 and 15 days FLOATING makes sense as there will likely be some pricing improvement by the end of the week.

Long-term - FLOAT

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

Wednesday

• MBA Mortgage Applications Report



• FOMC Policy Statement - This is extremely important as there will likely be information on their plan for Quantitative Easing

Thursday

• Weekly Jobless Claims

Friday

• October Unemployment Report

Mortgage Rate Lock Advice 10/25 - Opportunity for rate watchers as this week's pricing opens favorably

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 - LOCK if less than 7 days out from closing, but if between 7 and 15 days FLOATING with a cautionary monitoring of the markets could pay off.

Long-term - FLOAT

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

Tuesday

• Case/Schiller 20 City Home Price Index
• October Consumer Confidence Index
• $35 Billion 2 Year Treasury Auction

Wednesday

• MBA Mortgage Applications Report
• September Durable Goods
• September New Home Sales
• $35 Billion 5 Year Treasury Auction

Thursday

• Weekly Jobless Claims
• $29 Billion 7 Year Treasury Auction

Friday

• 3Q Advance GDP
• October Purchasing Managers Index
• $29 Billion 7 Year Treasury Auction
• University of Michigan Consumer Sentiment Index

Mortgage Rate Lock Advice 10/18 - Small Dip In Rates Marks Early Opportunity For Rate Shoppers

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 - LOCK, As the recent gains are too good not to take advantage of

Long-term - FLOAT

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

Tuesday

• September Housing Starts

Wednesday

• MBA Mortgage Applications Report

Thursday

• Weekly Jobless Claims

Mortgage Rate Lock Advice 10/12 - Rates begin the week strong, but the wise borrower should lock in now to exploit recent gains

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 - LOCK, As the recent gains are too good not to take advantage of

Long-term - FLOAT

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

Tuesday

• 3 Year Treasury Auction
• Release of notes from 9/21 FOMC meeting

Wednesday

• 10 Year Treasury Auction
• MBA Mortgage Applications Report
• September Import/Export Pricing Report

Thursday

• 30 Year Treasury Auction
• Weekly Jobless Claims

Friday

• September Consumer Price Index
• September Retail Sales Report
• University of Michigan/Reuters Consumer Sentiment Index
• August Business Inventories

Mortgage Rate Lock Advice 10/4 - Rates beginning the week trending positive, but agility and quick reaction time are key

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 - LOCK, For those 15 or more days out, you can FLOAT to take advantage of any improvements

Long-term - FLOAT

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

Wednesday

• MBA Mortgage Weekly Application Report


• September ADP Employment Estimate

Thursday

• Weekly Jobless Claims


• August Consumer Credit

Friday

• September Employment Data


• August Wholesale Inventories

Another Up Down Week in the Market Ends with Mortgage Rates Up a Bit

For a week chock full of economic data, the trends this week generally matched those of the previous weeks. Early in the week, low numbers for consumer confidence brought rates to near record lows again for a short time, but this passed and positive news on consumer spending and unemployment numbers. For any action there is a reaction and this positive news was accompanied by a reaction that economic improvements could negatively shape Fed policy. Markets reacted with a 180-degree turn around and an easing of upward pressure on mortgage rates. While this did temper the increase, mortgage rates for Fannie Mae and Freddie Mac conforming loans did end up a slight bit.

Reposted from my blog post on The Chicago77.

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Mortgage Rate Lock Advice 9/27: A Busy Week for Economic Data Could Create Lock Opportunity

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 - LOCK, For those 15 or more days out, you can FLOAT to take advantage of any improvements
• Long-term - FLOAT

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

Monday

• 2-Year Treasury Auction

Tuesday

• Case/Shiller Home Price Index
• September Consumer Confidence
• 5-Year Treasury Auction

Wednesday

• MBA Mortgage Weekly Application Report
• 7-Year Treasury Auction

Thursday

• Weekly Jobless Claims

Friday

• August Personal Spending and Income Index
• University of Michigan Consumer Sentiment Index
• August Construction Spending
• September Auto and Truck Sales

Mortgage Rate Lock Advice 9/20 - Vigilance and quick reaction is key for those with applications moving through the approval process

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 - LOCK, but LOCK on any price improvements

Long-term - FLOAT

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

Tuesday

• August Housing Starts
• FOMC Policy Statement

Wednesday

• MBA Mortgage Weekly Application Report
• FHFA Housing Price Index Report
  

Thursday

• Weekly Jobless Claims
• August Existing Home Sales
• August Leading Market Indicators
• Annoucement of Treasury Auctions

Friday

• August Durable Goods
• August New Home Sales

Rate Lock Advice 9/13 - Timing is Key to Securing Best Rate

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 - LOCK

Long-term - FLOAT, but if 15 - 30 days out I do recommend considering a LOCK on any rallies in the bond market.

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

Tuesday

August Retail Sales Report

July Business Inventories

Wednesday

August Industrial Production

Thursday

Weekly Jobless Claims

August Producer Price Index

Friday

August Consumer Price Index

University of Michigan/Reuters Consumer Sentiment Report

Another See-Saw Week in Mortgage Rates

Since last week’s use of Einstein’s quote was so well received, I thought it appropriate to begin this week’s commentary with a quote from the venerable Yogi Berra. Yogi remarked after seeing back-to-back home runs by Mickey Mantle and Roger Maris that it was “déjà vous all over again.” Such was the week in rates, with a drop followed by a return to the mean of the last month.

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Mortgage Rate Lock Advice 9/7 - Short-Term Locking of Mortgage Rates Recommended

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 - LOCK

Long-term - FLOAT, but if 15 - 30 days out I do recommend considering a LOCK if pricing improves as we are near the bottom.

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

Wednesday

• Weekly Mortgage Bankers Association Application Report
• 10 Year Treasury Bill Auction
• July Consumer Credit Report

Thursday

• Weekly Jobless Claims
• July US Trade Balance
• 30 Year Treasury Bill Aucrion

Friday

• July Wholesale Inventories

Click here if you want to know the rates for your individual situation or have a lending need

Please note that rates were trending flat at the time of writing this post

Mortgage Rates Hit Historic Lows, But Stall on Equities Rally

Einstein once said, "Put your hand on a hot stove for a minute, and it seems like an hour. Sit with a pretty girl for an hour, and it seems like a minute. THAT'S relativity." This concept is very important to this commentary as relativity is the guiding principal from which to evaluate the rate roller coaster we saw this week. On the one hand, rates did rise about 0.125%. On the other hand, the rise was from the lowest mortgage rates in history.

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Now May Be The Time To Lock Your Mortgage Rate If You Are Less Than 15 Days Out From Close

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 - LOCK

Long-term - FLOAT

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

Tuesday

• Case/Schiller 20 City Index - This will tell us a lot about the current health of the housing market
• Cosnumer Confidence Report
• Fed Minutes from 8/11 Meeting

Wednesday

• ADP Private Employement Data - This will tell us a lot about the health of employment outside of giovernement jobs
• Construction Spending Report
• Auto and Truck Sales Data - Always a good bellwether of spending

Thursday

• Weekly Jobless Claims - Very important and if negative could help rates
• Pending Home Sales - Could be an ugly number as housing has suffered in the wake of the expiration of the New Homebuyer Tax Credit

Click here if you want to know the rates for your individual situation or have a lending need

Please note that rates were trending down at the time of writing this post