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The Cost of Waiting for #Home Prices to Fall written by the KCM Crew

February 11, 2011
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The Cost of Waiting for Home Prices to Fall

by The KCM Crew on February 11, 2011 ·

Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.

The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.

PRICES

The National Association of Realtors (NAR) released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year:

The national median existing single-family price was $170,600 in the fourth quarter, up 0.2 percent from $170,300 in the fourth quarter of 2009.

A buyer who delayed a purchase might find solace in the fact that prices have not increased. However, the other news released yesterday paints a different picture.

INTEREST RATES

The Primary Mortgage Market Survey was released by Freddie Mac which showed that the 30 year fixed rate mortgage was at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac said:

“Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week…As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”

 

So prices have remained stable but interest rates have risen dramatically in the last 90 days. What does that mean to a buyer looking to purchase a home this year?

The price is the same. It just costs more.

Let’s show you what the news means:

By sitting on the sidelines for the last 90 days a purchaser lost:

  • $89.44 a month
  • $1,073.28 a year
  • $32,198.40 over the thirty year life of the mortgage

If you buy a $340,000 home, double all these numbers.

Bottom Line

Even if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.

Everybody loves a discount!

December 15, 2010
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Mortgage Market News for the week ending November 24, 2010

November 24, 2010
By
     
Korean Tension Drives Mortgage RatesDuring the short Thanksgiving week, turmoil in Korea had the greatest impact on mortgage rates. A wide range of economic data was released ahead of the holiday, but overall it was roughly neutral for mortgage rates, which ended the week slightly higher.

An attack by North Korea on a South Korean island caused global investors to shift funds to relatively safer assets on Tuesday. As usual, this hurt stocks and helped bonds, including mortgage-backed securities, pushing mortgage rates a little lower. The conflict did not escalate or spread, though, and investors reversed their actions on Wednesday, moving mortgage rates higher.

On Tuesday, the detailed minutes from the November 3 Fed meeting revealed a high level of disagreement between Fed officials about the new $600 billion quantitative easing program. With high unemployment and low inflation, Fed officials would like to take action. The problem is that the options available to the Fed to help boost economic growth have potentially negative consequences. According to the minutes, some Fed officials pointed out that the quantitative easing program could weaken the dollar or lead to undesirably high future inflation. In the end, 10 out of 11 Fed officials decided that the expected benefits justified the risks and was better than doing nothing, but many officials considered it a very close call. The relatively weak support within the Fed further clouds the future of the program, and the uncertainty for investors has added to already high levels of volatility in mortgage rates.

 

 
 Also Notable:

  • Weekly Jobless Claims dropped to the lowest level since July 2008
  • The core PCE inflation index rose at a low 0.9% annual rate
  • The Fed lowered its forecast for economic growth for 2011
  • Conforming loan limits will remain unchanged from 2010 levels through the third quarter of 2011
     
 

 

 
Average 30 yr fixed rate:
Last week: +0.10%  
This week: +0.01%  
Stocks (weekly):
Dow: 11,200 +50
NASDAQ: 2,550 +25

 

   Week AheadThe biggest economic event next week will be the important Employment report on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for an increase of about 150K jobs in November. Before the employment data, the Chicago PMI manufacturing index will be released on Tuesday. The ISM manufacturing index and the Fed’s Beige Book will come out on Wednesday. Pending Home Sales, a leading indicator for the housing market, will be released on Thursday. Factory Orders, ISM Services, Productivity, Construction Spending, and Consumer Confidence will round out the schedule.

 

To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.To Apply For a FREE First Mortgage Loan Pre-Approval if you live in Washington State visit www.williamatuning.com or call William Tuning at CU Mortgage Division in Lacey Washington at (360) 539-4687.

Mortgage Market News for the week ending November 5, 2010

November 5, 2010
By
 
     
Fed Announces StimulusAs expected, a week packed with major economic events produced a great deal of daily volatility in mortgage rates. The Fed’s announcement was positive for mortgage rates, the Employment report was negative, and the election results were neutral. In the end, mortgage rates finished the week exactly as they started.

On Wednesday, the Fed announced that it will purchase an additional $600 billion in Treasury securities by the end of the second quarter of 2011 to boost the economy. The Fed expects to purchase about $75 billion per month to reach this target. This fell near the middle of the wide range of investor forecasts. The Fed will regularly review both the pace of the purchases and the overall size of the program. Added demand for Treasury securities generally benefits other bonds as well, including mortgage-backed securities (MBS), and expectations for this plan have helped lower mortgage rates over the last couple of months. Prior to the announcement, there was so much uncertainty surrounding the program that mortgage rates improved a little further when the details contained no major surprises.

Mortgage rates rose on Friday when the Employment report came in stronger than expected. Against a consensus forecast for a gain of 60K jobs, the economy added 151K jobs in October. Private employers hired 159K workers, the highest level since April. Revisions from prior months added an additional 103K private sector jobs. As expected, the Unemployment Rate remained at 9.6%. Average hourly earnings, a proxy for wage growth, rose 0.2% from September. Stronger than expected economic data raises future inflation expectations, which pushed mortgage rates higher after the report.

 

 
 Also Notable:

  • As expected, the Fed made no change in the fed funds rate
  • September core PCE inflation rose at a low 1.2% annual rate
  • September Pending Home Sales fell 2% from August
  • The Treasury will auction $72 billion in 3-yr, 10-yr, and 30-yr securities next week
     
 

 

 
Average 30 yr fixed rate:
Last week: +0.15%  
This week: -0.01%  
Stocks (weekly):
Dow: 11,400 +300
NASDAQ: 2,575 +75

 

   Week AheadNext week will be a very light week for economic data. The Trade Balance and Import Prices, which generally are not market moving reports, will be released on Wednesday. Consumer Sentiment will come out on Friday. There will be Treasury auctions on Monday, Tuesday, and Wednesday. These will be the first auctions since the Fed’s announcement about quantitative easing, and the results may produce a significant reaction. Mortgage markets will be closed on Thursday for Veterans Day, while the stock market will not close.

 

To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com or www.cumortgagedivision.com
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.

 

  
 

For more info contact William Tuning at CU Mortgage Division. (360) 539-4687.

Mortgage Market News for the week ending October 29, 2010

October 29, 2010
By
     
Big Week AheadAhead of next week’s FOMC meeting and election results, mortgage rates have been very volatile. Rising rates early in the week were partially offset by improving rates later in the week. In the end, mortgage rates finished the week just a little higher.

At its next meeting on Wednesday, the Fed is expected to announce a new program to purchase Treasury securities (quantitative easing) to boost the economy. Based on comments from Fed officials, investors expect the Fed to purchase roughly $100 billion of Treasury securities per month. However, the most important question, the total size of the program, is still not known, and investors are very divided in their predictions. The middle ground of the forecasts calls for the Fed to commit to a minimum of $500 billion to $1 trillion. The program is positive for mortgage rates in some ways including added demand for mortgage-backed securities (MBS), but negative in terms of potentially raising future inflation levels. Whatever the Fed decides, investor expectations are so divergent that mortgage rates are likely to be highly volatile after the news.

The housing sector data released during the week was generally better than expected. September Existing Home Sales rose 10% from August. Inventories of unsold existing homes fell 2% to a 10.7-month supply. First-time buyers purchased 32% of homes. Distressed homes accounted for 35% of sales. September New Home Sales rose 7% from August. The inventory of unsold new homes fell to the lowest level since 1968.

 

 
 Also Notable:

  • Third quarter GDP increased a little to a 2.0% annual rate
  • Weekly Jobless Claims declined to the lowest level in three months
  • September Durable Orders posted the biggest increase since January
  • The G20 nations will try to maintain trade balances at “sustainable” levels
     
 

 

 
Average 30 yr fixed rate:
Last week: -0.03%  
This week: +0.05%  
Stocks (weekly):
Dow: 11,100 +50
NASDAQ: 2,500 +25

 

   Week AheadFor months, investors have been focused on next week’s events. The election will take place on Tuesday, and the results will influence trading on Tuesday and Wednesday. Then, the Fed announcement from the FOMC meeting will be released on Wednesday afternoon. No change in the fed funds rate is expected, but the Fed is likely to reveal the details of its new Treasury purchase program. The biggest economic data next week will be the important Employment report on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for an increase of about 50K jobs in October. Pending Home Sales, a leading indicator for the housing market, also will be released on Friday. ISM Manufacturing, ISM Services, Personal Income, and Productivity are also on the schedule for next week.

 

To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com or www.cumortgagedivision.com .
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.

Mortgage Market News for the week ending October 15, 2010

October 15, 2010
By
     
Bernanke Indicates More Stimulus Likely

This week, investors again focused on the expected new monetary stimulus program from the Fed, but no details were revealed. The economic data released during the week continued to show low inflation and modest economic growth. As a result of no real surprises, mortgage rates ended the week with little change.

A speech by Fed Chief Bernanke on Friday confirmed the expectation that the Fed will soon provide additional monetary stimulus by purchasing Treasury securities. The Fed’s plan is to boost the economy and to bring the inflation level up to the Fed’s preferred rate. According to Bernanke, “There would appear – all else being equal – to be a case for further action.” Investors hoping for more information about the size of the purchase program were disappointed, as Bernanke stated that it is still being discussed by Fed officials. Investors expect the Fed to reveal the details of the program at the next FOMC meeting on November 3, if not sooner.

The data released during the week showed that core inflation remains below the Fed’s desired range of 1.5% to 2.0% per year. The September Core Consumer Price Index (CPI), which excludes the volatile food and energy components, increased just 0.8% from one year ago, which was the lowest annual rate in more than 49 years. Central bankers around the world generally agree that a stable, positive inflation rate is optimal for long-term economic growth.

 

 
 

Also Notable:

  • Retail Sales increased in September for the third straight month
  • Demand was weaker than average for this week’s Treasury auctions
  • The Fed lowered its forecast for economic growth in coming years
  • Gold prices reached a new record high near $1,390 per ounce
     
 

 

 
Average 30 yr fixed rate:
Last week: -0.15%  
This week: +0.02%  
Stocks (weekly):
Dow: 11,050 +100
NASDAQ: 2,450 +50

 

   Week Ahead

Next week, Industrial Production, an important indicator of economic growth, will be released on Monday. Housing Starts will come out on Tuesday. The Fed’s Beige Book, revealing current economic conditions in different regions of the country, will be released on Wednesday. The Philly Fed index and Leading Indicators are scheduled for Thursday.

 

To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com or www.cumortgagedivision.com

All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.

Mortgage Market News for the week ending October 8, 2010

October 8, 2010
By
     
Weak Jobs Data Helps Mortgage Rates

Weak Employment data and increased expectations for Fed monetary easing were favorable for mortgage rates this week. Investors have priced in a high likelihood of additional Treasury security purchases by the Fed, which would increase demand for mortgage-backed securities (MBS). As a result, mortgage rates declined to a new record low.

While the private sector performed relatively well, Friday’s Employment data revealed net job losses and stagnant wage growth in September. Against a consensus forecast for a loss of 5K jobs, the economy lost 95K jobs. The weakness was seen mostly in the government sector, as state and local governments continued to shed jobs. The private sector actually added 64K, which was close to expectations. The Unemployment Rate remained at 9.6%. A broader measure, which also includes the underemployed, rose from 16.7% in August to 17.1%, matching the high reached in April. Average Hourly Earnings, a proxy for wage growth, was unchanged from August.

The Fed’s recent announcement that it may purchase additional Treasury securities (quantitative easing) to stimulate the economy has magnified the importance of economic news and increased daily volatility. Investors now evaluate each fresh piece of data in terms of its expected impact on Fed policy, and mortgage rates receive an extra benefit from weaker than expected data. In general, weaker economic growth leads to lower future inflation, which is favorable for mortgage rates. In addition, investors now expect higher levels of bond purchases by the Fed after weak data, and the increased demand also would be positive for mortgage rates. Of course, stronger than expected economic news will have the opposite effect and will push rates higher more quickly than usual.

 

 
 

Also Notable:

  • August Pending Home Sales, a leading indicator, rose 4% from July
  • The Bank of Japan (BOJ) unexpectedly cut interest rates nearly to zero
  • The Treasury will auction $66 billion in 3-yr, 10-yr, and 30-yr securities next week
  • Oil prices climbed above $83 per barrel, to the highest level since May
     
 

 

 
Average 30 yr fixed rate:
Last week: -0.01%  
This week: -0.15%  
Stocks (weekly):
Dow: 10,950 +150
NASDAQ: 2,375 +25

 

   Week Ahead

The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Thursday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Friday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, the detailed FOMC Minutes from the September 21 Fed meeting will be released on Tuesday. Retail Sales, an important indicator of economic growth, will be released on Friday. Retail Sales account for about 70% of economic activity. Empire State, the Trade Balance, Import Prices, and Consumer Sentiment will round out the week. There will be Treasury auctions on Tuesday, Wednesday, and Thursday. Mortgage markets will be closed on Monday for Columbus Day.

 

To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com or www.cumortgagedivision.com .

All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.

Mortgage Market News for the week ending October 2, 2010

October 2, 2010
By
     
Mortgage Rates Little Changed

Although daily volatility was high this week, mortgage rates ended the week nearly unchanged. A steady stream of economic news was roughly neutral for mortgage rates, as stronger than expected economic data was offset by solid demand for the week’s Treasury auctions.

During the week, a series of Fed officials shared differing viewpoints on the possibility of additional Fed purchases of Treasury securities. While the officials are divided about both the need and the effectiveness of buying bonds to stimulate the economy, the majority view appears to be that the Fed should undertake this action unless the pace of the economic recovery improves soon. A flexible program to purchase smaller quantities of Treasury securities has emerged as an appealing middle ground for Fed officials.

Overall, a new Treasury purchase program would be favorable for mortgage rates. Increased Fed demand for Treasury securities would also increase demand for similar investments including mortgage-backed securities (MBS), which would push mortgage rates lower. Investors have already priced in the likelihood that more purchases will take place. There may be a downside, though. In contrast to the recent MBS purchase program, which involved a relatively steady, well defined level of weekly buying, the new program may be geared to allow the Fed to adjust its purchases based on changing economic conditions. By its nature, a program that is more flexible will be less predictable. The uncertainty will likely lead to increased volatility for mortgage rates, as investors amplify their reaction to each piece of economic news.

 

 
 

Also Notable:

  • The July Core PCE inflation index increased at a low 1.4% annual rate
  • Effective October 4, FHA monthly MIP increases
  • Congress extended the current higher loan limits through Sept. 30, 2011
  • The Dow stock index rose 10% during the third quarter
     
 

 

 
Average 30 yr fixed rate:
Last week: -0.05%  
This week: -0.01%  
Stocks (weekly):
Dow: 10,800 -50
NASDAQ: 2,360 -15

 

   Week Ahead

The biggest economic event next week will be the important Employment report on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a decrease of about 15K jobs in September. Before the employment data, Pending Home Sales, a leading indicator for the housing market, will be released on Monday. Factory Orders also will be released on Monday. ISM Services will come out on Tuesday.

 

To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.

Daily Rate Lock Recommendation – 09/26/2010

September 26, 2010
By

This week brings us the release of five relevant economic reports for the bond market to digest in addition to two relevant Treasury auctions. There is nothing of importance scheduled for release tomorrow, so look for the stock markets to influence bond trading and possibly mortgage rates. Generally speaking, stock market strength makes bonds less appealing to investors and leads to higher mortgage pricing. But I would not be surprised to see a relatively calm day tomorrow as traders prepare for this week’s data.

The first release of the week is September’s Consumer Confidence Index (CCI) late Tuesday morning. This Conference Board index will be posted at 10:00 AM ET and gives us a measurement of consumer willingness to spend. It is expected to show a small decline from last month’s reading, indicating that consumers were less optimistic about their own financial situations than last month, therefore, less likely to make large purchases in the near future. Th is is good news for the bond market and mortgage rates because consumer spending fuels economic growth. Analysts are calling for a reading of approximately 52.9, down from August’s 53.5. The smaller the reading, the better the news for the bond market and mortgage rates.

The Treasury will sell 5-year Notes Tuesday and 7-year Notes Wednesday, which will tell us if there is still an appetite for longer-term securities. If investor demand in these sales is strong, particularly from international buyers, the broader bond market should move higher, pushing mortgage rates lower. But a lackluster interest from investors could lead to bond selling and higher mortgage pricing. The results of each sale will be announced at 1:00 PM ET each day, so any reaction to the results will come during afternoon trading Tuesday and Wednesday.

Thursday’s sole monthly or quarterly data is the final revision to the 2nd Quarter Gross Domestic Product (GDP). Since this data is ag ed now and the preliminary reading of the 3rd Quarter GDP will be released next month, I don’t see this revision having much of an impact on the financial markets or mortgage pricing. The GDP is important because it is the total sum of all goods and services produced within the U.S. and is considered the best measurement of economic activity. It is expected to show no change from the previous estimate of a 1.6% increase in the GDP. It will take a fairly large revision for this data to move mortgage rates Thursday.

Friday has three reports scheduled that may influence mortgage rates. The first is August’s Personal Income and Outlays early Friday morning. It gives us an indication of consumer ability to spend and current spending habits. This is important to the markets because consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is n egative news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to investors. It is expected to show a 0.3% rise in income and a 0.3% increase in spending. If we see smaller than expected increases, the bond market should react positively, leading to lower rates Friday.

The second report is the University of Michigan’s revised Index of Consumer Sentiment for September. The preliminary reading that was released earlier this month showed a 66.6 reading. Analysts are expecting to see a small upward revision, meaning consumer confidence was slightly higher than previously thought. As with Tuesday’s CCI release, a lower than expected reading would be good news for bonds and should help improve mortgage rates.

The Institute for Supply Management (ISM) will post their manufacturing index for September late Friday morning. This index measu res manufacturer sentiment. Analysts are expecting a decline from last month’s 56.3 reading. The 50.0 benchmark is extremely important because a reading above that level means more surveyed executives felt business improved than those who said it had worsened. This data is important not only because it measures manufacturer sentiment, but it is also very recent data. Some economic releases track data that are 30-60 days old, but the ISM index is only a few weeks old. If it reveals a reading below 54.5, meaning sentiment fell short of expectations, we should see the bond market rally and mortgage rates fall Friday. This is one of the more important reports of the week.

Overall, it is likely going to be a fairly active week in the markets and mortgage rates. The most important day will likely be Friday due to three reports being scheduled, but Tuesday’s events can also heavily influence mortgage rates. This is one of those weeks that I recommend maintaining contact with your mortgage professional 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… 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.

©Mortgage Commentary 2010

Daily Rate Lock Recommendation – 09/19/2010

September 19, 2010
By

This week brings us the release of five relevant economic reports in addition to another FOMC meeting. Only one of the factual reports is considered to be of high importance. In fact, most of the economic news is considered to be low or moderately important. This should help limit the possibility of significant changes to mortgage rates most days this week.

August’s Housing Starts will kick-off the week’s data early Tuesday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand by tracking construction starts of new homes, but is usually considered to be of low importance to the financial and mortgage markets. It is expected to show a slight increase in new home starts between July and August. I believe we need to see a significant surprise in this data for it to have an impact on mortgage rates.

The FOMC meeting is Tuesday and is a one-day meeting. Mr. Bernanke and friends will adjourn at 2:15 PM ET. There is little possibility of seeing any type of change to key short-term interest rates. However, the post-meeting statement could very well lead to volatility during afternoon trading as investors dissect it in an effort to find when the Fed’s next move may come. The wild card is how the markets react to the statement because the lack of a change to key short-term interest rates shouldn’t affect afternoon trading. If we see significant weakness in stocks, the bond market may benefit as a safe-haven from the volatility. This could lead to lower mortgage rates Tuesday afternoon and Wednesday morning.

Thursday has two reports scheduled for release late morning. The Conference Board will post its Leading Economic Indicators (LEI) for August, while the National Association of Realtors gives us home resale figures. The LEI index attempts to measure economic activity over the next three to six months. It is expected to show a 0.1% rise, meaning that it is predicting a slight increase in economic activity over the next several months. A larger than expected increase would be considered negative news for bonds and could lead to a minor increase in mortgage rates Thursday.
August’s Existing Home Sales report will also be released late Thursday morning. The National Association of Realtors posts this data, giving us an indication of housing sector strength by tracking home resales in the U.S. It is expected to show an increase from July’s sales, however, this data probably will be neutral towards mortgage pricing unless its results vary greatly from forecasts.

The remaining two reports will be released Friday morning. August’s Durable Goods Orders is the week’s single most important data and will be posted early morning. This report gives us an indication of manufacturing sector strength by tracking orders for big-tic ket items at U.S. factories. Big-ticket products are items that are expected to last three or more years. Analysts are expecting to see a decline in new orders of 1.3%. A larger than expected drop in orders could help boost bond prices and cause mortgage rates to drop Friday. However, a smaller decline would indicate a stronger than expected manufacturing sector and would likely help push mortgage rates higher. It is worth noting that this data is known to be quite volatile from month-to-month, so a slight or moderate difference may not affect mortgage pricing.

The final report of the week is August’s New Home Sales, which is the sister release to Thursday’s Existing Home Sales. It is expected to show that sales of newly constructed homes rose last month, indicating some housing sector strength. As with most of this week’s data, this report will likely not have a significant impact on mortgage rates unless its readings differ greatly from for ecasts. This is the week’s least important report in terms of potential impact on mortgage rates.

Overall, the most important report of the week is Friday’s Durable Goods Orders and the most important day will probably be Tuesday due to the FOMC meeting. I don’t believe any of this week’s data has the potential to move the markets or mortgage rates heavily. However, we still may see some changes in rates day-to-day, especially if the stock markets move significantly higher or lower. If still floating an interest rate, continued contact with your mortgage professional is recommended, but this will likely be a calmer week if comparing to recent weeks.

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… Float if my closing was taking place between 21 and 60 days… Float if my closing was taking place over 60 days from now… Th is 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.

©Mortgage Commentary 2010