Orlando Mortgage Blog

Apparently the emplyment numbers have yet to have much effect on the the DOW which is basically flat  (up about 2 points) or the 10 year treasury still hanging below 3% at 2.9813%. But, before a 3 day weekend it's a long time till closing. . .

2 PM Update

DOW stocks are now down 67 points or so after this AM's employment and manufacturing data. The 10 year treasuries are at 2.97% still below the 3% mark and stuck on 2.98% and below at the moment. I would normally expect this morning's negative data to have had a little more down movement on my world. Apparently lenders once again, most likely in preparation for a well deserved (for all of us) 3 day weekend, have hedged their points up about 25 bp this afternoon from this morning and with all the refinance packages coming in the door at the current fire sale levels they probably don't mind a little slowdown. I love that...two weeks ago none of us could get enough new business. It's a fickle world. If someone else is too busy, call me please. :)

I have to apologize for missing a couple days on the Blog this week folks. We have been in the midst of adding the popular FHA program to our product mix. That's right! Along with a very busy conventional market we've taken the next step for those of you that would like to purchase a home with as little as 3.5% down, do a rate and term refinance up to 97.25% LTV and do a cashout transaction up to 85% of the fair market value. Give us a call.

This week will be a fuller one than in recent weeks with several Bond sales and quarterly GDP numbers due out. Read on...

The DOW is currently down 103 points this morning on weak manufacturing reports and initial jobless claims coming lower than expected but continuing claims that were higher than expected. The 10 year treasury appears to be benefiting slightly back below 3% to 2.9937% after closing yesterday at 3.0444%.  Result firmed up yesterday's quotes.

The ten year bond closed at 3.1245% yesterday and sits at 3.0971 %at the time of this writing. Little to drive much on the DOW at the moment. This mornings points started out slightly higher on the overflow from yesterdays upswing on the bond yield. But back down about 10 bp at this time.

Couple agenda items today. Early morning May Goods and Services Trade Balance report due out. Not much expected unless major move from forecast. Then a 10 year Treasury Note auction today. Watch to see if the sale is met with strong demand and if so may see afternoon improvement on rate. If buyers sit on the sidelines, may see bonds fall after the 1 PM posting and rates move higher. Points down slightly on first rate sheet allowing a 4.375% rate quote on a 30 day purchase even though the DOW is up by over 100 points and the 10 year is also up at 3.0808% after closing at 3.0591% yesterday. 

Once in a while I am reminded by day-to-day life that the old axiom about "Assuming" anything is wrong as often as not. You guys out there will appreciate those times when you have thought all day about that last morsel of special cheese that's been aging in the back of the frig growing fur just waiting for you to ponce on it on one of your late night jaunts to the icebox. You assumed it would still be there only to find that your special someone has file thirteen'd it for the sake of the families health.

Here's one that can cost you big time: many times a customer may assume their current lender will look out for them and give them their best mortgage deal. That's great if they really do, but generally won't in my experience, check with them of course, don't let your assumption of what is correct stop you from shopping the truth. I see this type of thing all too often. Most of the time the lender can't or won't compete on price on the low end of the rate pricing and points scale. Why,because they believe you'll come back since they have you now, even with their slightly higher price and doubt you'll shop around. So, they naturally will try to upsell you to a rate buy-up bragging about "No Closing Costs". What's that about you ask? That's when you agree to a rate that is typically .375% to .50% higher than the standard zero point quote out there ( though just today I heard one quoting a full .75% higher on that rate  to a present customer). Since they earn more money by selling you the higher rate they can cover your closing costs which can be as much as 2%+/- of the mortgage amount. So are they free? Of course not. But it could work out for you to do a buy-up with someone for the right quote if your plans are short term for sure. The spread required to cover your costs will vary daily. Shop around for both options, the lower zero point rate and the buyup. Typical lender rates tend to be .125% to .25% higher on both ends of the spectrum almost daily, as they leverage their "Name",  than a brokered program and may even get sent to the same lender. Make a few calls (be sure to include us for certain). It's easy to prove it to yourself today.

Initial unemployment benefits dropped 21,000 to a seasonally adjusted 454,000 instead of the forecasted 460,000 this morning (that's only a 6,000 difference). So static stock futures jumped pre-opening and the 10 year treasury note is back above 3% or 5 bp higher than closing yesterday. It says something when a 6,000 difference on a national forecasted number has an effect like this. Any old news will do any more. 

Post Market Opening Update (9:50 am): Thin employment gruel is enough to run DOW up 73 points this morning and 10 year Treasury notes at 3.036% from yesterdays close below 3% at 2.9857%. Lenders that didn't late yesterday will probably bump up .25% on their points this AM and some rate levels are up .125% now. 

With a national average rate of around 4.625% last week (does not include typical 1% origination fee that's never mentioned) folks have been jumping on recent historically low refinance rates. According to the MBA 78.7% of new applications were for refinances. Read more...

The thirty year fixed rate purchase quote appears to have improved slightly to the basement 4.375% range early this morning on well qualified applicants submitting complete loan packages. We'll see if that holds with the DOW up 136 points on slim news on bank profits. The stock market is about all that's been driving rates of late as it plays tag with investors moving between it and bonds.

3PM rate update: DOW now up by 188 points and points just got bumped .25% on price. That's back to 4.50% /zero points on the 30 fixed. The good news about these washboard rates? IT'S IN THE MID 4% RANGE FOLKS! 

Pre-opening is fairly flat this morning. The 10 yr TSY at 2.9787% was basically a mirror image of Friday's closing 2.9752% and the DOW pre-opening was down about 45 points in the washboard up and down over the weekend. So, it's a wait and see and with little on the news front this morning I don't expect much early on. That might be nice for a change.

Morning Update at 9:50 AM: Rates static so far after market openings.