Utah Rates, Programs, Purchases or Refinaning by Utah's Mortgage Guy

Wednesday’s bond market has opened in positive territory again as investors prepare for today’s FOMC meeting adjournment. The stock markets initially opened in positive ground but have since slipped into negative territory. The Dow is currently down 16 points while the Nasdaq has fallen 8 points. The bond market is currently up 10/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

Today’s only relevant economic data was September’s Factory Orders report. It revealed a 2.1% increase in new orders at U.S. factories for durable and non-durable goods. This was a larger increase than expected, indicating strength in the manufacturing sector. However, this data is considered to be only moderately important and has not influenced this morning’s mortgage rates.

This week’s FOMC meeting will adjourn at 2:15 PM ET today. The markets are not expecting a change to key short-term interest rates, but all eyes will be looking for the Fed’s next move to boost economic activity. There is plenty of speculation that they will announce another debt purchase program after this meeting. I believe a lack of an announcement will cause the markets to react negatively. If they do say that a relatively large amount of debt will be bought, meaning the Fed will add liquidity to the mortgage markets, we could see a sizable rally in bonds this afternoon. That would likely lead to a noticeable downward revision to mortgage rates later today.

Look for an update to this report shortly after the markets have had an opportunity to react to the post-meeting statement and announcement. There is economic data scheduled for release tomorrow that may affect mortgage rates, but they will be addressed in the afternoon update.  View this blog often for the latest mortgage news and loan advisories.

If I were considering financing/refinancing a home, I would: Lock if my closing was taking place within 7 days. Float 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.

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