Mortgage Education with Matthew

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Gross Domestic Product (GDP) was reported this morning as being quite a bit higher than original expected.  Jobless Claims fell from last month but came in where analysts had expected. This boost in GDP is currently being credited to the economic stimulus checks that came out.

Technically speaking - the FNMA 6.0% 30 year bond continued its mini rally yesterday rising up to the 100 day moving average.  This mornings news will be prompting a sell off of bonds as investors look to move money from bonds to stocks.  Bonds being in an overbought status will help this trend.

I am recommending to take advantage of improved rates and

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Durable Goods came in at the same rate as last month but quite a bit higher than analyst expections.  This could be resulting from analysts not knowing when the $600 - $1200 tax rebate ended - or something else. 

Technically speaking - the FNMA 6.0% 30 year bond continued its mini rally yesterday.  Bonds are in an overbought status - look for this to bring some cooling off to yesterday’s rally.

I am recommending to take advantage of improving rates and

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Existing Home Sales were slightly improved yesterday.  Today New Home Sales, Consumer Confidence and the Fed Meeting minutes will be released.  The slight lift in yesterday’s report may signal a slight improvement in New Home Sales.  If you are to believe the media, Consumer Confidence will be reaching new lows - rather contrary to what the pundits believe.  With stocks looking to take a bounce from yesterday’s selloff, look for bonds to weaken today.

Technically speaking - the FNMA 6.0% 30 year bond has bounced off the 50 day moving average and is heading up.  Bonds are in an overbought status - look for this to bring some cooling off to yesterday’s rally.

I am recommending to take advantage of improving rates and

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Other than existing home sales due out at 10 AM, there will be no major economic reports due out till tomorrow afternoon when the minutes from the most recent Fed meeting will be released.  This morning rates appear to be improving on continued fear of a failing economy and oil taking another uptick. 

Technically speaking - the FNMA 6.0% 30 year bond has bounced off the 50 day moving average and is heading up.  Though bonds are approaching overbought status, this rally appears to have some legs.

I am recommending to take advantage of improving rates and

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

The news released yesterday shouldn’t have resulted in the downturn of the bond.  It’s more suspected that profit taking occurred especially with bonds being overbought.  Fed chief, Ben Bernanke, will be giving a speech on financial stability, which will cause bonds to react - just depends on what the traders think they hear.

Technically speaking - the FNMA 6.0% 30 year bond has fallen back to the 50 day moving average.  Being in an overbought state provides extra downward pressure on bonds.

I am recommending to

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Yesterday’s continued woes concerning Freddie and Fannie resulted in a mini rally for bonds.  This morning Jobless Claims were less than expected (though not by very much) and the Philadelphia Fed Index came in slightly improved as well (but still in contraction mode).

Technically speaking - the FNMA 6.0% 30 year bond jumped quite nicely yesterday barreling through the 50 day moving average, though currently coming back down.  One negative working against the momentum is the bond currently being overbought.

With the 50 day moving average broken but some weakness in the market I am recommending to

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Even with yesterday’s unexpected increase in PPI, bonds held their own throughout the day.  This morning good news on HP’s solid earning help the pre-market stock gain.  Since then reports have come out showing Freddie Mac and Fannie Mae may still be in trouble causing earlier gains to be wiped out.

Technically speaking - the FNMA 6.0% 30 year bond held its own on the 50 day moving average yesterday.  This mornings news appears to be giving the bond the momentum to break through the 50 day moving average.  One negative working against the momentum is the bond currently being overbought.

Until the 50 day moving average is solidly broken I am recommending to

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Both Building Starts and Building Permits were down from the previous month by more than 10%.  Producer Price Index (PPI) and the Core PPI both came in significantly higher.  These reports are reflecting how much oil can effect all corners of the economy.  Though Core PPI strips out energy and energy, oil is still prevalent in all that we do in production.

Technically speaking - the FNMA 6.0% 30 year bond held its own on the 50 day moving average yesterday.  Though unable to break through, it has been able to hold steady at this level..

With the apparent inability to break the 50 day moving average I am recommending to

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Today is a non report day.  Tomorrow will see several scheduled economic reports released.  This will mean bonds taking direction from stocks.  Currently stocks are showing an improvement and bonds are taking the appropriate negative action.

Technically speaking - the FNMA 6.0% 30 year bond rallied nicely on Friday breaking through the 10 and 25 day moving average.  This morning it bumped up against the 50 day moving average and has since fallen back.

With the apparent inability to break the 50 day moving average I am recommending to

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Some minor reports were released this morning.  Each showed better than expected but bonds appear to be rallying anyway.  This is rather unusual since stocks are also appearing to rally on the news that oil is slipping again due to weak global economic concerns and the continue rally of the dollar.

Technically speaking - the FNMA 6.0% 30 year bond rallied nicely yesterday getting up to the 10 day moving average.  This morning bonds have broken through this level rather nicely.  With bonds currently neither overbought nor oversold, this rally has the potential to continue.

Even with all the good news I am still recommending to

  LOCK your mortgage rate.

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock