Market Analysis

Below is an analysis from Larry Baer regarding the potential impact from economic data for the remainder of the week.  The Fannie Mae 5.50% Mortgage-Backed Security (MBS) did close above a price of 99.531 today which was where Larry drew the line between cautiously floating and locking.   We recommend having your loan set up with a lender you believe you want to use so that you can be ready to lock quickly should the market begin to deteriorate.  This is particularly important going into Friday's non-farm payroll report. If you would like to be ready 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 . 

Larry Baer with Market Alert:

 Looking ahead to the balance of the week the Commerce Department will release their revised first-quarter Productivity and Unit Labor Cost numbers on Wednesday - and the numbers are expected to show wage inflation remains nonexistent - which will be some potentially good news for the prospects of steady to lower mortgage interest rates.  The "Big Kanhuna", the May Nonfarm Payroll report, will hit the news wires at 8:30 a.m. ET on Friday.  Nonfarm payrolls are forecast to post a 53,000 loss in May -- resulting in a slight up-tick in the national jobless rate to 5.1% from April's 5.0% level.  The projected jobs numbers are already reflected in the mortgage market so a close match between the forecasted figures and the actual data will not likely move interest rates much one way or the other.

   Don't forget - markets almost always crash down -- and they very seldom ever crash up.  I encourage you to avoid the temptation to get aggressive with your "floating" loan positions until/unless the Fannie Mae 5.5% 30-year mortgage-backed security can at least muster the momentum to close above a price of 99.531.