Important Economic Data
Today’s only factual economic data was the release of December’s New Home Sales late this morning. Newly constructed homes fell 7.6% last month. That was a much larger decline than was expected and helps support the theory that the housing market still has some troubles to overcome. This is basically good news for bonds and mortgage rates but this data is not considered to be highly important, so its impact on this morning’s rates has been minimal.
Today also brings us the adjournment of the 2-day FOMC meeting that will end at 2:15 PM ET. It is expected to yield no change to short-term interest rates, but as is often the case, traders will be looking for any indication of the Fed’s next move and when they may make it. I believe that there is little chance of indicating a possible rate hike in the near future. This is not the most influential meeting they have had.
Look for an update to this report shortly after the markets have an opportunity to react to the afternoon events. There is relevant economic data scheduled for release tomorrow (December’s Durable Goods Orders) along with the 7-year Note auction.
Mortgage Interest Rates are rising after todays Fed announcement. There was no mention of the housing markets improvement this time around.
This economic data has be in a LOCking bias for the near future
Lock/Float
If I was closing on a Home Mortgage in the next 0 to 15 Days – LOCK
If I was closing on a Home Mortgage in the next 15 to 30 Days – LOCK
If I was closing on a Home Mortgage in the next 30 to 60 Days – FLOAT
If I was closing on a Home Mortgage in the next 60+ – FLOAT
bc@SmarterBorrowing.com 617.771.5021
Credit: Bloomberg, Yahoo Finance, Mortgage News, MBS Quoteline
bc@smarterborrowing.com
617.771.5021
