Market Analysis

The big news yesterday was not that the Fed cut their funds and discount rates by .25%.  It was that the Fed did not say that they were going to stop cutting.  The bond market is responding positively to that news and we have seen rates improve by approximately .125%.  The next big event needed to push rates lower is a very weak April nonfarm payroll report tomorrow.  The consensus estimate among economists is that 80,000 jobs will have been lost in April. If the amount of jobs lost is less than that, we will most likely see the improvement from yesterday afternoon and today evaporate.  I am torn between recommending floating or locking right now.  It may be worth taking the gains that have come our way and not worrying about what happens tomorrow.  Even after locking, we are able to renegotiate once once and get within .375 points in closing costs of current market.  For example if the market improves to 5.50% with 0 points, we can renegotiate once to 5.50% with .375 points. If you would like to lock with us, the first step is to be pre-approved.  You can access a short application form at http://www.ironharbor.com/xSites/Mortgage/IronHarbor/Content/UploadedFiles/Iron%20Harbor%20Short%20Application.pdf
Posted by Matthew Breston on May 1st, 2008 9:39 AMPost a Comment (0)
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