Be Sure To Work With A Mortgage Planning Specialist That Keeps You Informed.
Market
Comment
Mortgage bond prices rose last week
pushing mortgage interest rates lower.Trading in the financial markets remained extremely volatile with wide
swings in stock and oil prices.Oil
prices fell sharply at the beginning of the week pushing stocks higher and
pressuring rates.Stock prices fell
sharply Wednesday and Thursday helping rates recover and move lower.
For the week,
interest rates on government and conventional loans fell by about 5/8’s of a
discount point.
The producer
price index data Friday will be the most important event this week.There isn’t much data until the latter
portion of the week so oil prices, US dollar strength, and stocks will likely be
the focus in the beginning.
Looking Ahead
Economic
Indicator
Release
Date and Time
Consensus
Estimate
Analysis
Consumer Credit
Monday, Sept. 8,
3:00 pm, et
Up $8.5 billion
Low
importance.A significantly larger
than expected increase may lead to lower mortgage interest
rates.
Trade Data
Thursday, Sept. 11,
8:30 am, et
$58 billion deficit
Important.Affects the value of the dollar.A falling deficit may strengthen the dollar and lead to lower
rates.
Producer Price Index
Friday, Sept 12,
8:30 am, et
Down 0.3%,
Core up 0.2%
Important.An indication of inflationary pressures at the producer level.Lower figures may lead to lower
rates.
Retail Sales
Friday, Sept 12,
8:30 am, et
Up 0.1%
Important.A
measure of consumer demand.Large
decrease may lead to lower mortgage rates.
Business Inventories
Friday, Sept 12,
10:00 am, et
Up 0.5%
Low
importance.An indication of
stored-up capacity.A significantly
larger increase may lead to lower rates.
U of Michigan Consumer Sentiment
Friday, Sept 12,
10:00 am, et
None
Important.An indication of consumers’ willingness to spend.Weakness may lead to lower mortgage
rates.
Professionals
Obtaining a mortgage is often a
confusing task that can also lead to frustration.The reason for the confusion is due to
the fact that mortgage financing is complex.The good news is that this complexity
provides consumers with options and choices best suited to fit their
needs.
Everyone’s financial position is
unique.Some people have large cash
reserves that can be used for down payments while others want to get into a home
with little money down.Credit
ratings vary from person to person.In addition, future plans vary.Some people plan on staying in their home for the rest of their lives
while others only plan on staying for a few years.
These
facts alone make comparing your mortgage to your neighbor’s based on rate alone
a flawed endeavor, yet many people attempt to do so.Admittedly, everyone wants a good
deal.Keep in mind that comparing
rates is just one component of the entire mortgage.Other variables include the term, down
payment requirements, income qualifications, credit ratings, reserve requirements,
current debt, prepaid points, and many more.
A mortgage professional is able to
take all of these variables that are unique to each individual and help a person
obtain the mortgage loan that works best for their situation.The service they provide is time
consuming and complex.However, the
rewards of dealing with a professional carry forward throughout a borrower’s
life.Making wise financial
decisions today helps to pave the way for a safe and secure future.
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