Rate Lock Advisory

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RATE LOCK ADVISORY

August 11 , 2009, 1:15 PM PST

Rate Lock Advice: FLOAT
MBS AM prices reached a high of 10/32 and currently are up +11/32. Second Qtr Productivity showed an increase of 6.4%, above the consensus forecast of 5.5% but there was little immediate impact.

When MBS prices are up, yields (rates) are down.

NOTE: Lock advice can change throughout the day .

National Average Fixed Rate Mortgage
Down 0.05% at 5.3% on Aug.11

Fannie Mae Mortgage Backed Securities
MBS Opened at 5.071% Down 0.099%.

10 Year Treasury currently 3.670% Down -0.13%

DJI stocks 9,241.45, Down -96.5, -1.03%

European and Asian Markets Down -0.571%

Nymex Crude Oil currently $71.98 Down $1.31

WORRIED ABOUT AN OUT OF TOWN APPRAISER? If you are concerned about the value of your listing and need a local appraiser consider FHA financing where we can still control the appraiser selection

Where are the best rates: Mortgage Brokers or Direct Lenders? Rate Survey

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Click for inter-day Rate Lock and Market updates

Today, as of 4:00 PM ET MBS prices are up +11/32 (FNMA 30-yr 4.5 at 99.22), above the 9:45 AM PT initial pricing level for most lender of +8/32, and at the high for the day. Today's Productivity data had almost no impact on MBS prices. Demand was strong for the 3-yr Treasury auction, and foreign investors purchased 63% of the total.

Tomorrow, there is a lot of news that can affect markets. the Trade Balance will be released at 8:30 et. There will be a 10-yr Treasury auction at 1:00 et. The Fed policy announcement will be released around 2:15 et.

Friday was bad news for Mortgage Markets. MBS prices were close to unchanged levels before the release of the Employment data. Against a consensus forecast for a loss of -300K jobs, the economy lost -247K jobs in July, and the May and June data was revised to show fewer job losses as well. This was the 19th straight month of job declines, but it was the smallest level of losses since August 2008.

The July Unemployment Rate fell to 9.4% from 9.5% in June, which was below the consensus for a rise to 9.6% and its first decline in 15 months. In addition, Average Hourly Earnings rose more than expected, and the average workweek increased. Overall, this report revealed unexpected strength in nearly every area, and MBS prices dropped sharply after the news. June Pending Home Sales rose 3.6%, the fifth consecutive monthly increase. Pending Home Sales are a leading indicator for future housing market activity.

Click for current Lending news and information

Time is running out, don't let your buyers delay, the $8,000 Tax Credit is expiring on November 30.

Up to a $8000 Tax Credit is available from IRS

10 Ways to Avoid A Closing Nightmare
An easy list that will make your life easier

Your Fha Guru

Bill Ladewig
800.664.SAVE (7283)
Bill@yourfhaguru.com

The Mortgage Markets and Rate Lock Advisory is updated several times a day and is available at http://www.yourfhaguru.com