Hey Guys,

I am excited to see that the rates have FINALLY settled in!!!  We have a tool here at A.C.L. that is updated daily...the "Daily Rate Lock Advisory."  PLEASE keep an eye on our website!!!  Don't miss this FREE information that will provide GREAT information!!!  The web address is http://www.acl-mortgage.com/DailyRateLockAdvisory.

Steve Smith, President of A.C.L. Mortgage Services, L.L.C.

Email address:  steve@acl-mortgage.com

 

 

Rate Lock Advisory - Monday Mar. 31st

Monday's bond market has opened in positive territory as investors prepare for this week's data. The stock markets are also showing gains with the Dow up 45 points and the Nasdaq up 12 points. The bond market is currently up 8/32, which will likely improve this morning's mortgage rates by approximately .375 of a discount point over Friday's morning rates.

This week is light in terms of the number of economic reports scheduled for release, however, two of the three reports that are scheduled to be posted are considered to be of high importance. With important data being posted only tomorrow and Friday, we should see several days of little movement in mortgage pricing.

The first relevant report of the week comes late tomorrow morning when the Institute for Supply Management (ISM) will release their manufacturing index. This index gives us an important measurement of manufacturer sentiment by surveying trade executives. A reading below 50 means more surveyed executives felt business worsened during the month than those who said it had improved. This month's report is expected to show a decline from last month's reading of 47.5, meaning business sentiment fell during the month. That would be good news for bonds and mortgage rates.

February's Factory Orders will be posted early Wednesday morning. This data is similar to last week's Durable Goods Orders report, except that this report includes orders for both durable and non-durable goods. Unless it varies greatly from forecasts of a 0.8% decline, I suspect that it will be a non-event in the mortgage market.

The other important report of the week will be posted Friday morning. The Labor Department will release March's Employment report, giving us the U.S. unemployment rate and the number of jobs added to the economy. This is an extremely important report to the financial and mortgage markets. It is expected to show an increase in the unemployment rate from February's 4.8% to 5.0% and that approximately 50,000 payrolls were lost during the month.

Overall, I expect to see the most movement in rates either tomorrow or Friday. Friday is the most important day of the week with the employment numbers being released, but we will likely see a fair amount of movement in rates Tuesday morning also. In between we should see fairly calm days as long as the stock markets don't stage significant rallies or a sell-off.

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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