Today's Rates
Take a look at the National mortgage rates and trends - and then look at our Smart Rates. We generally compare very favorably with rates nationwide.
Powered by Mortgage Rates
My Rates for June 1, 2011 - Need More Info - Complete the Quik Rate Quote.
BTW, the lowest rate is not always the best loan terms. There are many factors and scenarios that affect your interest rate, payment, fees, etc. Let me help you understand the loan process and make the best decision for your and your family.
For More Rates and Terms, please give me a call or complete the Quik Rate Quote.
For More Rates and Terms, please give me a call or complete the Quik Rate Quote.
APR based on $150,000 Loan Amount. Rates are subject to change without notice based on market conditions. Rates are lowest rate with 1 point origination. Rate/APR and terms may vary based on the creditworthiness of the individual.
Market Commentary
National Rates
Latest Rate Updates
 |
 |
 |
 |
 |
 |
 |
Linda Miller
A Smart Loan Lady
801.506.3133 Office Direct
877.262.8650 Toll Free
A Smart Loan Lady
801.506.3133 Office Direct
877.262.8650 Toll Free
NMLS #39250 National Mortgage Licensing System - Utah, Idaho, Oregon, Texas
Updated on June 1, 2011
Wednesday’s bond market has opened well in positive territory due to a much weaker than expected manufacturing report and sizable stock losses. The stock markets opened with minor losses but have since reacted negatively to today’s late morning economic data. The Dow is currently down 122 points while the Nasdaq has lost 22 points. The bond market is currently up 22/32, which has pushed the yield on the benchmark 10-year Treasury Note below 3.00%. This will likely translate into an improvement of approximately .250 of a discount point in this morning’s mortgage rates.
The Institute for Supply Management (ISM) announced late this morning that their manufacturing index fell to 53.5 last month, well below what analysts were expecting. This was the lowest reading since September 2009 and dropped the index interestingly close to the extremely important threshold of 50.0. A reading below 50 means that more surveyed executives felt business worsened during the month than said it had improved. The sub-50.0 reading is considered to be a recessionary sign and is great news for the bond market and mortgage pricing.
The markets are having a textbook like reaction to the news. The surprisingly weak manufacturing data questions the likelihood that the economy can continue its slow recovery, making stocks less attractive to investors. Bonds are benefiting in two ways- as a safe-haven from the stock volatility and as a longer-term investment due to a significant sign of economic weakness. Since we still have some highly important economic data scheduled for the week, we could see even more movement in the markets and mortgage rates the next couple of days. It will be interesting to see if the 10-year Note can stay below 3.00%. If so, there is plenty of room for mortgage rates to move lower. Unfortunately, I believe we will see a battle at 3.00%, so keep an eye on the markets if still floating an interest rate.
Tomorrow has three pieces of data scheduled that may influence bond trading and mortgage rates. The first is the revised 1st Quarter Productivity and Costs that measures employee output and employer costs for wages and benefits. It is considered to be a measurement of wage inflation. It is believed that the economy can grow with low inflationary pressures when productivity is high. Last month's preliminary reading revealed a 1.6% increase, but I don't think this piece of data will have much of an impact on the bond market or mortgage pricing unless it varies greatly from that reading.
The second release of the day will come from the Commerce Department, who will post April's Factory Orders data during late morning trading. This manufacturing sector report is similar to last week's Durable Goods Orders release, but also includes orders for non-durable goods. It can cause some movement in the financial markets if it varies from forecasts by a wide margin, but it isn't expected to cause much change in rates either. Current forecasts are calling for a decline in new orders of 1.0%.
The third is the Labor Department’s weekly update on unemployment claims. They are expected to announce that 413,000 new claims for unemployment benefits were filed last week, down from the previous week. Ideally, the bond market would like to see an increase in new claims as the higher the total, the weaker the employment sector is. With the almighty monthly Employment report being posted Friday morning, this release may cause more movement in the markets than it usually does as traders prepare for Friday’s major report.
©Mortgage Commentary 2011 Please email me with your comments.
Wednesday’s bond market has opened well in positive territory due to a much weaker than expected manufacturing report and sizable stock losses. The stock markets opened with minor losses but have since reacted negatively to today’s late morning economic data. The Dow is currently down 122 points while the Nasdaq has lost 22 points. The bond market is currently up 22/32, which has pushed the yield on the benchmark 10-year Treasury Note below 3.00%. This will likely translate into an improvement of approximately .250 of a discount point in this morning’s mortgage rates.
The Institute for Supply Management (ISM) announced late this morning that their manufacturing index fell to 53.5 last month, well below what analysts were expecting. This was the lowest reading since September 2009 and dropped the index interestingly close to the extremely important threshold of 50.0. A reading below 50 means that more surveyed executives felt business worsened during the month than said it had improved. The sub-50.0 reading is considered to be a recessionary sign and is great news for the bond market and mortgage pricing.
The markets are having a textbook like reaction to the news. The surprisingly weak manufacturing data questions the likelihood that the economy can continue its slow recovery, making stocks less attractive to investors. Bonds are benefiting in two ways- as a safe-haven from the stock volatility and as a longer-term investment due to a significant sign of economic weakness. Since we still have some highly important economic data scheduled for the week, we could see even more movement in the markets and mortgage rates the next couple of days. It will be interesting to see if the 10-year Note can stay below 3.00%. If so, there is plenty of room for mortgage rates to move lower. Unfortunately, I believe we will see a battle at 3.00%, so keep an eye on the markets if still floating an interest rate.
Tomorrow has three pieces of data scheduled that may influence bond trading and mortgage rates. The first is the revised 1st Quarter Productivity and Costs that measures employee output and employer costs for wages and benefits. It is considered to be a measurement of wage inflation. It is believed that the economy can grow with low inflationary pressures when productivity is high. Last month's preliminary reading revealed a 1.6% increase, but I don't think this piece of data will have much of an impact on the bond market or mortgage pricing unless it varies greatly from that reading.
The second release of the day will come from the Commerce Department, who will post April's Factory Orders data during late morning trading. This manufacturing sector report is similar to last week's Durable Goods Orders release, but also includes orders for non-durable goods. It can cause some movement in the financial markets if it varies from forecasts by a wide margin, but it isn't expected to cause much change in rates either. Current forecasts are calling for a decline in new orders of 1.0%.
The third is the Labor Department’s weekly update on unemployment claims. They are expected to announce that 413,000 new claims for unemployment benefits were filed last week, down from the previous week. Ideally, the bond market would like to see an increase in new claims as the higher the total, the weaker the employment sector is. With the almighty monthly Employment report being posted Friday morning, this release may cause more movement in the markets than it usually does as traders prepare for Friday’s major report.
©Mortgage Commentary 2011 Please email me with your comments.
Quik Quote
