Depends...
when are you closing?
Before I get to your money heres
a quick fact and something you should look at when evaluating whether to buy or
not.
The gap between renting vs
buying has shrunk dramatically over the last 3 years. If you would actually like to do that evaluation give me a
call and lets evaluate your personal situation. In cities like Los Angeles, it’s actually about $134 less a
month to buy than it is to rent.
Now to your
money.
What about money? It’s still cheap! Not as cheap as it was 6 weeks ago
however in the big scheme of things.
Cheap.
Tuesday's bond market has opened
in negative territory despite early stock losses and weaker than expected
economic data. The bond market is currently down 9/32, which will likely push
this morning's mortgage rates higher by approximately 1/8th - 1/4th of a discount
point.
The Conference Board gave us today's
only relevant economic data when they posted June's Consumer Confidence Index
(CCI) late this morning. They reported a reading of 49.3 that was well below
forecasts of 55.1. This means that consumers were much less optimistic about
their own financial situations than many had thought. This is actually supposed
to be good news for the bond market and mortgage rates since it indicates
consumers are less apt to make large purchases in the near future.
Unfortunately for mortgage shoppers, bond traders seem to have forgotten that
this morning.
It seems that the Institute of Supply
Management (ISM) will release their manufacturing index for June late tomorrow
morning and the reading may be below 50. Analysts are expecting a reading of
44.0. That would indicate that manufacturers felt business improved slightly
from the previous month. Good news for bonds and mortgage rates would be a
weaker than expected reading.
Thursday brings us the release of two
monthly reports, Employment and May's Factory Order's data.
The beef!
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.
A
personal note
I have got to say that the loss of Michael Jackson last week has been more difficult than I expected. I find myself hearing his music on various radio stations and turning the volume up. Simultaneously, remembering the many good times I have shared with friends while enjoying his music. I hope that we can all look at his artistry, his musical gift and appreciate the artist and have compassion for the man.
