The most important report will be on Friday with the Unemployment Report. Analysts are predicting that unemployment will go from 9.4% to 9.6%. That would be good for the bond market therefore good for mortgage interest rates. If the unemployment rate is lower, then we could see a raise in mortgage interest rates on Friday.

The other important reports will start on Monday with the January’s Personal Income which gives us consumers’ ability to spend and current spending habits. Remember, consumer spending makes up two-thirds of our economy. Traders are looking for a 0.06% and if it is higher it can move mortgage interest rates higher.

Tuesday, we have the index that reports on manufacturers sentiment, Supply Management. This reports on what manufacturer’s  executives feel about their  business conditions as to whether our economy is getting better or worse.  

Employee Productivity and Costs Data for the 4th Quarter is on Thursday. This report deals with cost of the production and how it relates to capital input and labor costs.

Each of these reports can move the market up or down along with global events. With the Mideast and especially Egypt dealing with riots, protests, and overturning of governments, this could have an effect on the markets in regards to the cost of oil.

You can read a more in depth report about a review of last week’s happenings, this coming weeks’ reports, and a video on “Tax Planning” in this week’s MMG Weekly Report.

As always, please feel free to contact me with your questions or concerns whether it be about your particular mortgage financial situation or more information about how the bond market affects mortgage interest rates.

To an inspired day and week,

Betsy Moore
Mortgage Advisor
MLO# 118165
206-331-2749

Though this week is a busy one for economic reports only a few can and might move the market. But remember, other global news can spook the market.

Tuesday besides the FOMC meeting, we will get the Consumer Confidence Index. This is moderate to high importance report. It indicates how confident the consumer is in their own financial situation, whether they will be making any big ticket item purchases, and the economy as a whole.

Friday will see four economic reports being released but the most important one will be the Gross Domestic Product for the 4th Quarter of 2010. This is important as it tells us if the economy has been recovering and growing. A weaker report will be good for the bond market and therefore mortgage interest rates. A good report which is stronger than the expected 3.8% growth will have the exact opposite effect on the bond market and therefore mortgage interest rates.  

The other report on Friday that can affect mortgage interest rates will be the 4th Quarter Employment Cost Index. That measures employers cost of employees’ wages and benefits. A good report can indicate inflation which is bad for the bond market.

And on top of these important reports, the Treasury will be auctioning off 5-year and 7-year Treasury Notes respectively on Wednesday and Thursday. If these are well received then we can see a raise in mortgage interest rates in the afternoon on both days. If not, then lower interest rates.

In this week’s MMG Weekly Reportis an article on the new “driving” rules set forth by the IRS as well as more indepth information about last week and the economic reports that will be released this week.

As always, please feel free to contact me with your questions or concerns whether it be about your particular mortgage financial situation or more information about how the bond market affects mortgage interest rates.

To an inspired day and week,

Betsy Moore
Mortgage Advisor
MLO# 118165
206-331-2749

The most important news for this week will be Bernanke and Company’s schedule meeting on Tuesday. It will be an one day meeting ending with their press release at 2pm EST. Traders will be again checking each word in the statement to gleam which way the economy is going and when the FOMC will increase their Fed Fund Rate.

The rest of the week will be followed by Housing News both Housing Starts, Building Permits, New and Existing Home Sales. Housing is an important part of our economy as is jobs. Thursday brings the weekly Initial Jobless Claims. Last week, we saw an improvement on claims. Ending the week is Durable Goods which tells us about manufacturing and this report can move the market even though it tends to not always be correct and needs revisions after the fact.

In this week’s Weekly MMG, there is an article about how to handle “When Your Child’s School Asks to Give, Give, Give” as well as more depth information about last week and this week’s economic reports.

As always, I’ll be following these and more so that I am up on the news that affects mortgage interest rates.

You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am. 

I also will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.

Please remember, I welcome your comments to this and my other posts.

To an  inspiring week,

Betsy Moore

What does this mean to you, the consumer?

When you apply for a home loan, the investor requires a tri-merge credit report with your mid-score being, at present, at 640 or above. The higher your credit score, the better your interest rate will be along with loan to value, cash-out or not, and purchase or refinance.

Normally once your credit report is pulled another one isn’t usually pulled, until now.

We are reverting back to the 90′s when a second credit report is pulled just prior to closing. So in other words after you have signed your loan documents and right before funding the loan, the investors are starting to require that a second report is pulled.

What are they looking for?

Mainly to see if your credit has stayed the same and to make sure you haven’t added more debt to your bottom line.

Best advice is during the mortgage loan process, keep everything to a minimum. It is exciting to purchase a new home and want to run out to purchase new furnishing whether it be new appliances, new furniture, or new window coverings. But please be warned that if you add debt to your bottom line, that home that you have started to furnish may not be yours.

So, please wait until after you get the call that your mortgage home loan has recorded.

Tuesday’s Retail Sales will report whether the consumer is spending or not. Remember, two-thirds of our economy is made up of consumer spending. So if we as consumers aren’t spending, we aren’t helping the economy. A larger than expected uptick in consumer spending will move the mortgage interest rates up as traders and investors will be concerned about economic growth expanding faster than previously indicated.

Consumer Price Index (CPI) on Friday will reveal whether inflation is a factor in our economy. Inflation is bad for the bond market so money will flow out of bonds into stocks as inflation erodes the value of the bonds.  This will then cause mortgage interest rates to also raise.

Wednesday and Thursday brings us the other reports. Though August’s Industrial Production, August’s Producer Price Index, Core Producer Price Index and Consumer Sentiment normally won’t move the markets, they can if one of these reports are  way off the mark for the better or worse.

As always, I’ll be following these and more so that I am up on the news that affects mortgage interest rates.

You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am. 

I also will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.

Please remember, I welcome your comments to this and my other posts.

To an  inspiring week,

Betsy Moore

1. Not shopping around for the best rates: Though refinancing rates have dropped down considerably, still it would be wise on your part to shop around for different rates from different lenders. It often happens that your existing mortgage lender will want you to make a new paperwork for refinancing your mortgage. In that case, it’s better to walk away to a new lender. Shaving one-eighth of a percent off your interest rate can save you thousands of dollars on your monthly payments. Thus, consider making a comprehensive market research before settling with a particular lender.

2. Focusing only on the interest rate: Although the interest arte is the main factor in deciding what your mortgage payments would be, but concentrating only on the interest rate will not do. Closing costs are also to be taken into consideration. Closing costs vary from lender to lender and a low rate may seem to be tempting apparently but they may be a come on to a loan with high fees. Be sure that you inquire about the loan origination fees, points and all other fees before applying for a loan.

3. Signing loan documents without properly reviewing them: Check all the loan documents before you sign them. Do your homework before coming to the closing. You won’t get enough time to review those papers while you calculate the closing costs. So make it a point to review them in advance. Make your mortgage refinancing a success by checking all your documents before you add your signature to it.

4. High prepayment costs: There are some loans that come with a prepayment penalty. You should find out how long this payment penalty period exists for. If you’ve already planned to leave your house within a year and your prepayment penalty is for 2 years, you will have to pay the prepayment penalty in future. Thus make sure that you check such costs so that you do not have to pay them in future.

Thus, if you’re keen on going for mortgage refinancing, make sure that you avoid the above mentioned mistakes. Refinance your mortgage and pay off your home loan in affordable monthly payments.

On Thursday, we will have the weekly Initial Jobless Claims Report. Instead of growing jobs, we are still losing jobs though thankfully not at the rate we were before. But with the stimulus money not having a great affect on the job’s market and with state governments having budget shortfalls, we may see more layoffs soon instead of job gains.

Then on Friday, we have Retail Sales, Consumer Price Index and Core Consumer Price Index. Retails Sales is important as if we continue to save instead of consume/spend, the economy won’t recover. As consumers, we contributes to two-thirds of our economy. The two Consumer Price Index Reports shows us inflation at the consumer level.

You can read about all of this in more detail in this week’s MMG Weekly as well as an article on “How to Succeed On Webcam Interviews.”

As always, I’ll be following these and more so that I am up on the news that affects mortgage interest rates.

You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am. 

I also will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.

Please remember, I welcome your comments to this and my other posts.

To an  inspiring week,

Betsy Moore

This is coming in from 3 good sources now- the vote on HR 4899 yesterday DID authorize funds for USDA. The bill is just waiting for Obama’s signature so we now know the USDA is getting their funding!

If you’ve been waiting for this, contact your lender to make sure you have all the necessary documents to close your loan as soon as funds are released.

Though we will start the week out on Monday with New Home Sales which is expected is be up a bit which shouldn’t affect mortgage interest rates since the report only tracks about 15% of the new home sales. But if it is up more, it could affect interest rates.

Tuesday will start the bigger news in Consumer Confidence Index. This report tells us whether consumers, us, are confident about their own financial situation which translates to will we spend money on big ticket items. This report is important to the economy as consumer spending which has been tight over the last two years makes up two-thirds of our economy. In other words, if we don’t spend, the economy isn’t going to grow and we won’t pull out of the recession fully. Quite a catch-22.

Wednesday, we have Durable Goods  which gives us an indication of manufacturing strength.  The traders expect an upward tick in this report from May to June.

Thursday, we have the all important Initial Jobless Claims. Jobless Claims keep going up instead of down. And with the new extension on unemployment benefits, the outlook still isn’t looking as rosy as we would all like it to be.

And then Friday, we have Gross Domestic Products (GDP) and Consumer Sentiment Index. GDP will reflect 2nd Quarter and is the sum of what we have produced for both service and products. It indicates our economic activity and whether we had good growth during that time. This report can move the market one way or the other. Consumer Sentiment Index will reveal our optimism on our own financial situation.

Besides these reports, the US  Treasury Department will be auctioning off $104 Billion in 2-year notes, 5-year notes and 7-years notes Tuesday, Wednesday and Thursday, respectively. Depending on how well these auctions do, it can affect mortgage interest rates.

You can read about all of this in this week’s MMG Weekly as well as an article from Kiplinger on “10 Things We Overpay For:You Can Save Big by Buying Cheap Alternatives Instead“.

As always, I’ll be following these and more so that I am up on the news that affects mortgage interest rates.

You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am. 

I also will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.

Please remember, I welcome your comments to this and my other posts.

To an  inspiring week,

Betsy Moore

206-331-2749

The economic reports that will be released this week will be on Tuesday, the Housing Starts and Building Permits. This will give us an update on what is being built and going to be built. On Thursday, we will get the Initial Jobless Claims. We will welcome any positive changes in this report.

Last week, Congress passed the sweeping Financial Reform Bill. There has been much talk in our industry about this bill and the changes it will bring. The bill itself is over 2,000 pages but unfortunately doesn’t address the major causes of the financial meltdown. As financial corporations try to digest this over the next weeks and months, they will continue to hold on to their cash reserves. And as long as they hold on to the their cash and don’t invest it (lend it out), we will continue to have a very bumpy recovery.

You can read about all of this in this week’s MMG Weekly as well as an article from Kiplinger on “Tweets Can Help Your Business”.

As always, I’ll be following these and more so that I am up on the news that affects mortgage interest rates.

You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am. 

I also will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.

Please remember, I welcome your comments to this and my other posts.

To an  inspiring week,

Betsy Moore

206-331-2749