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Today's California Mortgage Guide Report
Updated on Feb 3 2004 12:00PM EST
California Mortgage Guide primarily aims to give you an idea about the real estate industry in California. It supplies you with the latest information about the new homes for sale in the area. Apart from this, it also allows you to monitor the movement or the rise and fall of real property assets. Since it is always our aim to keep you posted all the time, we provide guides on a daily basis. This feature lets you monitor the rapid movement of real estate industry.
Tuesday’s bond market has opened in positive territory mostly as a result of terrorism concerns that arose form news of possible Ricin in Washington D.C. The stock markets are currently in positive territory with the Dow up 10 points and the Nasdaq up 3 points. The bond market is currently up 6/32, which should improve this morning’s mortgage rates by approximately .25 of a discount point.
There is no relevant economic data scheduled for release today, so look for the stock markets to dictate direction of bond trading and mortgage pricing. With no very important economic news scheduled for release until Friday, I am shifting back to a Lock recommendation for immediate term closings. This is not a expectation of rates to rise, just that the likelihood of them improving much more the next few days has dropped in my opinion.
The next two reports scheduled for release are the less important ones of the week. Wednesday’s Factory Orders report and Thursday’s Productivity and Costs data can cause some movement in the bond market, but should have a minimal impact on mortgage pricing. If they vary greatly from analysts’ forecasts we may see some movement in mortgage rates as a result of stock market reaction, but the reports themselves probably will have little direct impact on rates.
The last release of the week is arguably the single most important report that we see every month. The Labor Department will post January’s Employment data early Friday morning. This report gives us the U.S. unemployment rate and the number of jobs added or lost during the month amongst other related statistics. Analysts are expecting to see the unemployment rate remain at 5.7% and approximately 160,000 new jobs. An increase in unemployment and fewer new jobs than expected would be great news for the bond market. It would probably create a stock market sell-off, leading to lower mortgage rates.
If I were considering 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.
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