Our Real Estate Blog

Mortgage Rates (9/5/2010 - The Week Ahead)
September 5th, 2010 3:04 PM
This week brings us the release of only two pieces of economic data, but neither of them are considered to be highly important. In addition to the economic releases, we also have two Treasury auctions that may play a role in this week's mortgage pricing. The financial and mortgage markets will closed Monday in observance of the Labor Day holiday, meaning we will not see new mortgage rates until Tuesday morning.

The first release of the week comes Wednesday afternoon. The Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by Federal Reserve regions. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed's next move. Most likely thou gh, it will be a non-event and will not lead to a noticeable change in mortgage rates.

Also Wednesday is a 10-year Treasury Note auction, which will be followed by a 30-year Bond auction Thursday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. If the sales are met with a decent demand from investors, indicating interest in longer-term securities such as mortgage-related bonds still exists, the earlier losses are usually recovered after the results are announced. The results of the sales will be posted at 1:00 PM ET each day. If demand was strong, particularly from international investors, we should see mortgage rates improve during afternoon trading Wednesday and Thursday.

July's Goods and Services Trade Balance data will be posted early Thursday morning, giving us the size of the U.S. trade deficit. It is expected to show a deficit of approximately $47.2 billion, which would be a decline from June's $49.9 billion. However, I would consider this the least important of this week's events, meaning it will likely have little impact on bond trading or mortgage rates unless it varies greatly from forecasts. 

Overall, this week looks like it will be much less active for mortgage rates than last week was. With the financial markets closed tomorrow, we only have four days of trading. There is no particular data that is important enough to label its day of release as the most important of the week. This may allow the stock markets to heavily influence bond trading and therefore, impact mortgage rates this week. As long as the stock markets do not stage a sizable rally or sell-off this week, the likelihood of seeing significant changes to mortgage rates is fairly minimal.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my c losing 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. 
Posted by Lehel Szucs on September 5th, 2010 3:04 PMPost a Comment (0)

The Solutions to Life's 10 Biggest Problems!
September 5th, 2010 2:55 PM

The Solutions to Life's 10 Biggest Problems!

Every day clients tell me about their problems, often in great detail, and I've noticed patterns that show up over and over. For many people, life's problems are viewed as "not enough money" or "not enough time". For couples, the problems are often around "communication" or "parenting" or sex. They think if they only had more money or more time or better sex or a better job, things would be wonderful.
But it doesn't work that way, because these things are not the BIG PROBLEM. From my experience, I suggest life's really big problems are:

1. Tunnel Vision. The tendency to focus only on the immediate crisis or sore spot. Under stress, things look worse or more complex than they really are. The solution: Perspective. Ask if it will matter in 6 months. Ask what else is going on? How did I create this situation and, in an ideal world, what would I like to do about it?

2. Fear. The anxiety or terror that things will go badly, that we will fail or be embarrassed. The solution: Humor and Curiosity. Modern life has very few saber-tooth tigers. The situation is rarely life or death. Ask, What's the worst that can happen? What's the best? What can I learn? What would I do if I had no fear?

3. Confusion. The sense of being lost or unclear about our direction. The sense that we don't know our own priorities anymore. The solution: Responsible Choices. Choose your values and priorities and set your own path. Your life is yours. Check your moral compass, pick a direction and do something extraordinary!

4. Guilt. The belief that we have hurt or failed or sinned and deserve punishment. Guilt is either accurate, because sometimes we do behave badly, or it is false and simply an illusion. The solution: If we have transgressed, we must make restitution, ask forgiveness, learn from our error and move on. If it is false guilt, set it down as an unnecessary and irrational burden.

5. Shame. The belief that we are worth-less than others, that we have a terrible, incurable flaw. It is not that we have done something wrong (guilt), but that we are bad or wrong. The solution: Clear, rational thinking. Everyone has behaved badly, but no one was created badly! Any flaws only serve to make you stronger, more heroic or more compassionate toward others.

6. Loneliness. The belief that no one loves us, that no one cares and we must desperately cling to anyone who finds us attractive or acceptable. This creates dependency, not intimacy. The solution: Accurate Self-Assessment. Not everyone will love you, but many people will if they meet you, get to know you, and spend time working/playing along side you.

7. Resentment. Holding anger and refusing to move beyond real or imagined mistreatment in the past. Some people spend their whole lives as "victims", nurturing a terrible event in their past. The solution: Let go! Life is not fair and people do not always behave well or kindly. Use your trauma to make you wise, kind, gentle, and strong. Holding anger will not work.

8. Self-Doubt. The repeated, endless questioning of your own abilities, opinions or actions. The inability to take a stand, to act boldly, or to follow-through. The solution: Action! Think clearly, then take action and follow-through. Start small, but do it! You are the world's expert on your life! Use your wisdom to live well.

9. Stubbornness. The refusal or inability to re-assess a situation, change your mind, or admit you were wrong. The solution: Wisdom and Humility. Only a fool stays on a course that is headed for disaster! Search for new and better information, remain flexible, open and creative. When the situation changes, adjust accordingly and set a new course.

10. Addiction. Humans become addicted to drugs, but we also become addicted to our jobs, our opinions or our lifestyle. We can be addicted to people and need them rather than love them. The solution: Take a vacation! Periodically, walk in someone else's shoes. Break your habits, re-arrange your schedule, delegate those things that only you can do "right". Use habits and traditions to set you free, don't let habits enslave you!


© Copyright 2003 by Philip E. Humbert. All Rights Reserved. This article may be copied and used in your own newsletter or on your website as long as you include  the following information:  "Written by Dr. Philip E. Humbert, writer, speaker and success coach. Dr. Humbert has over 300 free articles, tools and resources for your success, including a great newsletter!

Posted by Lehel Szucs on September 5th, 2010 2:55 PMPost a Comment (0)

7 Attributes of the Truly Confident Person
September 4th, 2010 10:45 AM

7 Attributes of the Truly Confident Person - By Elaine Sihera

A lot of people might believe they are confident, depending on how they feel on any given day. But confidence is not a fleeting thing that is here today and takes a holiday tomorrow. Confidence is all pervasive. It shows itself in every aspect of our lives: the way we view ourselves, perceive our world, approach crises, the way we treat others, our readiness to exercise compassion and forgiveness, and, most important, the way we treat ourselves.

True confidence is an incredible feeling because it has a few key attributes embedded in it, seven of them, in fact, which are the hallmarks of the truly confident person. You cannot say you are confident unless you score highly on each of those seven aspects.

1. Self Love
This is the first crucial attribute. If you have no self-love, you have no confidence because this is at the heart of confidence: self-love and self-acceptance, which then decide our self-esteem. It is not possible to be happy and confident yet dislike our bodies or ourselves. Any lack of self-love is a prelude to misery and dissatisfaction with our lot. Happiness begins from within and when we love ourselves and do not seek the approval of anyone, we are half-way to real contentment and the next key attribute, self-belief.

2. Self-Belief
With self-love comes amazing self-belief in what is truly possible. The Universe is our limit, as we become unstoppable and fearless. People who think highly of themselves do not see barriers to achievements or obstacles in their paths. Anything which blocks their journey can be removed because confident people already believe they have the tools to remove those blocks. They can cope with crises too because they believe they can. That is the main difference between a confident and a fearful person: one believes they have the power to affect their life, whereas the other person looks to others to do it for them.

3. Comfort in Themselves
Confident people are happy in their own skin. They love who they are, they do not wish to be anyone else and they seek no one's approval to be whom they wish to be. That is a sure sign of a strong sense of belonging and personal security. Even when there is a setback, they know it is only temporary and they will be back in action again because they value themselves and their talents, regardless of what other people think. They tend to do what they please without following the fashion or being lemmings. Being natural leaders, they tend to set the pace for others and to inspire them.

4. Self-Awareness
Confident people know their limitations and their potential. That is because they do not sit and dwell on their weaknesses, like people of low esteem. They identify their strengths and nurture them while acknowledging their weaknesses as important to their personality. They are fully aware that the unique beings they are is the result of BOTH their strengths and weaknesses, so they do not dwell on the negative aspects of their personality. They know what makes them happy and sad. Being leaders and optimists, they are more assured in their direction and objectives because they understand who they are and what they want, which is the first key step to boosting achievement and personal development.

5. Fearlessness
Confident people tend to be pioneers, fearless in their approach and their actions. It is not that they do not have the usual fears of survival. What they don't have is the limiting and paralyzing fears regarding simply living their life to the utmost which plague insecure and non-confident people. Those with high self-esteem are keen to get on with it so they tend to act first and be afraid later! Willing to take risks and to make sacrifices, they have very little fear in living their life to the max.

6. Experiment
Really confident people love to experiment, to try out new situations, innovate and create, They are always pushing the boundaries of their talents because of their self-belief. Unlike people of low esteem, confident ones do not care about making mistakes, because they know that's how they learn and grow. They are not worried about being wrong, but at arriving at a solution or a different result, no matter how many times they have to change their approach. They recognize that mistakes are part and parcel of success on their personal journey. Failure is not in their vocabulary and so they will achieve their desires no matter how long it takes, because they have the tenacity, self-belief and determination to keep trying even when many others have given up.

7. Happiness
Confident people are truly happy with their life. It doesn't mean they are never sad. It means that if they are down it lasts very briefly and then they are back up again. They know they can always do something else and change the result. People of low esteem always blame themselves and reinforce that with even poorer thoughts of their abilities, so they stay in the doldrums much longer. They are not truly at peace so they take the knocks badly. Confident people know that setbacks are temporary and all they need to do is brush themselves off and start over again, while keeping their eye on their goals. Above all, being contented with themselves and their bodies, confident people tend to be truly happy, approachable, often cheerful and with a ready smile.

How confident are? Why not try our confidence quiz?

** To comment on this article or to read comments about this article,
go here.
 
About the Author:
Elaine Sihera is the most noted and quoted British woman on the Internet, being the world authority on emotional health. Nicknamed Ms CYPRAH (or Cyber-Oprah by admirers), Elaine is the first Black graduate of the UK's pioneering Open University and a postgraduate of Cambridge University.

A qualified senior high school teacher and former education manager, magazine editor and equality consultant, she is the prolific author of six books and nearly 1100 articles on emotional health, self-empowerment, career advancement and people management.

An Internet agony aunt, freelance broadcaster and columnist, Elaine is also the Change Expert for http://www.fiftyforward.co.uk/change.php, being a very keen advocate of changing perceptions on ageing and boosting people's feelings about themselves.

Elaine enjoys her work very much by living to purpose and in line with her own advice. She believes a smile and laughter are the best medicines and does not take herself too seriously too often. She is divorced with two kidults, Andre and Nicole.

Posted by Lehel Szucs on September 4th, 2010 10:45 AMPost a Comment (0)

Mortgage Rates (9/3/2010)
September 3rd, 2010 10:18 AM
Friday's bond market as opened well in negative territory following the release of stronger than expected employment news. The stock markets are reacting favorably to the data with the Dow up 61 points and the Nasdaq up 21 points. The bond market is currently down 26/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.

This morning's key economic data came from the Labor Department who gave us August's Employment report. It showed that the U.S. unemployment report rose to 9.6% as expected. The bad news came in the other two primary readings that the markets follow. The data showed that only 54,000 jobs were lost last month when analysts were expecting to see a loss of 120,000. Also, the average hourly earnings reading rose 0.3% when forecasts called for a 0.1% increase.

The fewer job loss number indicates a stronger employment sector than many had thought. The stronger earnings also raises concern for the bond market because it gives consumers more money to spend. Therefore, this report was not good for bonds and mortgage rates and is the cause of this morning's selling.

Next week brings us the release of little economic data to drive bond trading and mortgage rates. There are also a couple of relevant Treasury auctions schedule in addition to the Fed Beige Book. The financial markets will be closed Monday in observance of the Labor Day holiday and will reopen Tuesday morning. There are no important events on tap for Tuesday, but look for details on next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock 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. 
Posted by Lehel Szucs on September 3rd, 2010 10:18 AMPost a Comment (0)

Mortgage Rates (9/2/2010)
September 2nd, 2010 8:52 AM
Thursday's bond market has opened in negative territory again as yesterday's sell-off extends into this morning's trading. The stock markets are showing relatively minor gains with the Dow up 18 points and the Nasdaq up 15 points. The bond market is currently down 11/32, which should push this morning's mortgage rates higher by approximately .125 - .250 of a discount point.

None of today's three reports showed a surprise significant enough to affect mortgage rates. The revised 2nd Quarter Productivity reading revealed a 1.8% decline. This was slightly weaker than the 1.7% decline that was forecasted, but was not enough of a variance to affect bond trading or mortgage rates. The Labor Department reported that 472,000 new claims for unemployment benefits were filed last week when 475,000 were expected. As with the productivity reading, this was not enough of a difference to influence this morning's mortgage pricing.

July's Factory Orders report w as released late this morning, showing a 0.1% increase in new orders for durable and non-durable goods. Analysts were expecting to see a 0.3% increase, so at first look this data can be considered good news for bonds and mortgage rates because it indicates weaker than expected manufacturing activity. However, a significant upward revision to June's orders offset July's news, creating a neutral impact on this morning's trading.

The Labor Department will be in the spotlight tomorrow morning when they post July's Employment report. It will give us the U.S. unemployment rate, number of new jobs added or lost and average hourly earnings for August. The ideal scenario for the bond market and mortgage rates are rising unemployment, a larger than expected drop in payrolls and earnings to remain unchanged. Analysts are expecting to see that the unemployment rate moved from 9.5% to 9.6% and that 120,000 jobs were lost during the month. Weaker then expected readings would be very good news for bonds and would likely lead to lower mortgage rates tomorrow. However, if we get stronger than expected numbers, mortgage rates will probably spike higher.

Tomorrow's report is arguably the most important release that we see each month. The initial GDP reading can be considered the single most important overall, but it is posted quarterly. Therefore, we can expect to see some volatility in the markets after tomorrow's release. This is especially true during early morning hours as traders make a knee-jerk reaction to its results. Add in the fact that the markets will be closed Monday in observance of the Labor Day holiday, which means that some traders may be heading home early tomorrow, and we have the potential for a very interesting day in the mortgage market. Therefore, proceed cautiously if still floating an interest rate.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock 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. 
Posted by Lehel Szucs on September 2nd, 2010 8:52 AMPost a Comment (0)

Mortgage Rates (9/1/2010)
September 2nd, 2010 8:10 AM
Wednesday's bond market has opened down sharply after this morning's economic data showed surprising strength. The stock markets are heavily influencing bond trading with significant gains. Stocks have had quite a strong reaction to this morning's news, pushing the Dow up over 230 points and the Nasdaq up 57 points. The bond market is currently down 30/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point. Strength in bonds late yesterday is helping to prevent a larger increase to this morning's rates.

Today's news came from the Institute for Supply Management (ISM), who released their manufacturing index for August late this morning. They announced a reading of 56.3 that was not only well above forecasts, but also an increase from July's reading. This means that manufacturer sentiment about business conditions was much stronger than analysts had expected. When this happens, bonds tend to move lower and s tocks higher as it is a sign of economic strength. 

Yesterday afternoon's release of the minutes from the last FOMC meeting didn't reveal any significant surprises, but did indicate that the Fed is considering, or at least willing to invest more funds into mortgage-related securities. That can be considered good news for bonds and mortgage rates since the additional buying should drive mortgage pricing lower. However, it is just a thought at this time and cannot be given much weight until the Fed does decide to pursue that route.

There are two reports scheduled for release tomorrow morning that have the potential to influence rates. The first is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show a downward change from the previous estimate of a 0.9% decline. Forecasts are currently calling for a 1.7% drop, meaning productivity was weaker than previously thought. This would be negative news for the bond market and mortgage rates, but this data is not one of the more important reports we see each quarter. Therefore, unless there is a large variance from expectations, this report will likely have little impact on tomorrow's rates.

July's Factory Orders data will also be released tomorrow morning. This report measures manufacturing sector strength and is similar to last week's Durable Goods Orders, but includes orders for both durable and non-durable goods. It is expected to show a 0.3% increase in new orders. A smaller than expected rise would be favorable for bonds, while a large than forecasted increase could lead to higher rates tomorrow morning.

Also worth noting are weekly unemployment figures that will be released by the Labor Department early tomorrow morning. They are expected to say that 475,000 new claims for unemployment benefits we re filed last week. Since this data tracks only a single week's worth of claims, it usually takes a fairly significant surprise for mortgage rates to react. This is especially true when monthly figures will be posted the following day, as is the case this week.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock 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. 
Posted by Lehel Szucs on September 2nd, 2010 8:10 AMPost a Comment (0)

Mortgage Rates (8/31/2010)
September 2nd, 2010 8:09 AM
Tuesday's bond market has opened in positive territory despite stock gains and stronger than expected economic data. The stock markets are reacting favorably to this morning's only important data with the Dow currently up 40 points and the Nasdaq up 7 points. The bond market is currently up 14/32, which should improve this morning's mortgage rates by approximately .250 of a discount point. 

August's Consumer Confidence Index was posted late this morning. The Conference Board announced a reading of 53.5 that was an increase from last month's reading and higher than analysts' forecasts. That is considered bad news for the bond market and mortgage rates because it means consumers may be more apt to make large purchases in the near future, fueling economic growth.

Later today, the minutes from the last FOMC meeting will be posted. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member's views on the economy and inflation and if they will hint what the Fed's next move may be. But this is one of those events that can cause significant movement in rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing. 

Tomorrow's only important news is the release of the Institute for Supply Management's (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show 52.9, which would be a decline from last month's reading of 55.5. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected decline in the index would likely cause selling in the stock markets and lead to an improvement in mortgage rates tomorr ow.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock 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. 
Posted by Lehel Szucs on September 2nd, 2010 8:09 AMPost a Comment (0)

Mortgage Rates (8/30/2010)
August 30th, 2010 10:24 AM
Monday's bond market has opened in positive territory after concerns about the economy and this week's have led to a negative open in stocks. The Dow is currently down 49 points while the Nasdaq has lost 11 points. The bond market is currently up 14/32, but we will likely see little change in this morning's mortgage rates do to weakness late Friday. 

Today's only relevant economic data was July's Personal Income and Outlays. It showed that personal income rose 0.2% while spending rose 0.4% last month. The income reading matched forecasts, but the increase in spending was a little higher than what analysts were expecting. Therefore, this data can be considered neutral to slightly negative for bonds and mortgage rates.

Tomorrow has two releases scheduled that may affect mortgage rates. The first is August's Consumer Confidence Index from the Conference Board. This index measures consumer sentiment about their personal financial situations, givin g us a measurement of consumer willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. A decline in confidence would indicate that surveyed consumers probably will not make a large purchase in the immediate future. That sign of economic weakness should drive bond prices higher, leading to lower mortgage rates tomorrow morning. The 10:00 AM ET release is expected to show a reading of 50.0, which would be a small decline from July's 50.4. The lower the reading, the better the news for bonds and mortgage pricing.

Also tomorrow is the release of the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member's views on the economy and inflation and if they will hint what the Fed's next move may be. But this is one of those events that can cause significant movement in rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing. 

Overall, I expect to see the most movement in rates Friday, but tomorrow and Wednesday should also be fairly active. Also worth mentioning though is the fact that next Monday is Labor Day so all markets will be closed. The bond market will not close early this Friday, but many traders may head home for the long weekend after Friday's data is posted. This means that trading will likely be thin Friday afternoon even though the markets will still be open. This could lead to additional volatility in rates as traders prepare for the long weekend, so please be careful this week if still floating an interest rate.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock 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. 
Posted by Lehel Szucs on August 30th, 2010 10:24 AMPost a Comment (0)

Mortgage Rates (8/29/2010 - The Week Ahead)
August 30th, 2010 10:18 AM
There are six relevant economic reports scheduled for release this week in addition to the minutes from the most recent Fed monetary policy meeting. With at least one piece of data being posted each day this week, it is fairly safe to assume that we will see another active week in the financial and mortgage markets.





Unlike many Mondays, tomorrow does bring us one of those reports. July's Personal Income and Outlays report will be released early tomorrow morning, giving us a measurement of consumer ability to spend and current spending habits. It is expected to show an increase of 0.2% in income and a 0.3% increase in spending. Weaker than expected numbers would be considered good news for the bond market and mortgage rates.

The Conference Board will post their Consumer Confidence Index (CCI) for August late Tuesday morning. This index measures consumer sentiment about their personal financial situations, giving us a measurement of consumer willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. A decline in confidence would indicate that surveyed consumers probably will not make a large purchase in the immediate future. That sign of economic weakness should drive bond prices higher, leading to lower mortgage rates Tuesday. It is expected to show a reading of 50.0, which would be a small decline from July's 50.4. The lower the reading, the better the news for bonds and mortgage pricing.





Also Tuesday is the release of the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member's views on the economy and inflation and if they will hint what the Fed's next move may be. But this is one of those events that can cause significant mo vement in rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing. 

Wednesday's only important news is the release of the Institute for Supply Management's (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show 53.0, which would be a decline from last month's reading of 55.5. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected decline in the index would likely cause selling in the stock markets and lead to an improvement in mortgage rates Wednesday.

There are two reports scheduled for Thursday. The first is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without in flation concerns. It is expected to show a downward change from the previous estimate of a 0.9% decline. Forecasts are currently calling for a 1.6% drop, meaning productivity was weaker than previously thought. This would be negative news for the bond market and mortgage rates.





July's Factory Orders data will also be released Thursday morning. This report measures manufacturing sector strength and is similar to last week's Durable Goods Orders, but includes orders for both durable and non-durable goods. It is expected to show a 0.3% increase in new orders. A smaller than expected rise would be favorable for bonds, but I don't see this data causing much movement in rates unless its results vary greatly from forecasts.

The biggest news of the week comes Friday morning. The Labor Department will post the unemployment rate, number of new jobs added or lost and average hourly earnings for August early Friday morning. The ideal scenario f or the bond market and mortgage rates is rising unemployment, a larger than expected drop in payrolls and earnings to remain unchanged. Analysts are expecting to see that the unemployment rate moved from 9.5% to 9.6% and that 118,000 jobs were lost during the month. Weaker then expected readings would be very good news for bonds and lead to lower mortgage rates Friday. However, if we get stronger than expected numbers, mortgage rates will probably spike higher Friday.

Overall, I expect to see the most movement in rates Friday, but Tuesday and Wednesday should also be fairly active. Also worth mentioning though is the fact that next Monday is Labor Day so all markets will be closed. The bond market will not close early this Friday, but many traders may head home for the long weekend after Friday's data is posted. This means that trading will likely be thin Friday afternoon even though the markets will still be open. This could lead to additional volatility in rates as traders prepare for the long weekend, so please be careful this week if still floating an interest rate.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock 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. 
Posted by Lehel Szucs on August 30th, 2010 10:18 AMPost a Comment (0)

Another helpful Web site for struggling homeowners
August 30th, 2010 10:15 AM
Another helpful Web site for consumers is Hope LoanPort, which allows struggling homeowners and housing counselors to submit financial documents to mortgage companies and track the status of their efforts to avoid foreclosure. Hope LoanPort was created by Hope Now, a consortium of 12 mortgage companies and 250 counseling agencies.
Posted by Lehel Szucs on August 30th, 2010 10:15 AMPost a Comment (0)
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