Mortgage Update for Monday June 29th 2009

Monday's bond market has opened in positive territory as investors prepare for this week's economic news. The stock markets have opened the holiday-shortened week in positive ground with the Dow up 83 points and the Nasdaq up 10 points. The bond market is currently up 13/32, which should improve this morning's mortgage rates slightly. We haven't gotten any improvements from our investors but if it stays like this it wont be long.

This week brings us the release of only four economic reports for the markets to digest, but three of them are considered to be important and one of those three is arguably the most influential report we see each month. In addition, these reports are being released over just three trading days.

There is no relevant economic data scheduled for release today. June's Consumer Confidence Index (CCI) is the first report of the week and will be posted late tomorrow morning. This index is important to the financial markets because it measures consumer willingness to spend, which is important because consumer spending makes up two-thirds of the U.S. economy. If it shows a sizable increase in confidence from last month, we can expect to see the bond market falter and mortgage rates rise slightly. Current forecasts are calling for a reading of 55.1, up slightly from last month's 54.9 reading.

Overall, tomorrow and Wednesday's data (Consumer Confidence Index and ISM index) should bring some volatility in trading and mortgage rates, but Thursday's Employment report is definitely the most important of the week. Its impact can single handily lead to an improvement or increase in mortgage rates for the week.

The financial markets will be closed Friday in observance of the Independence Day holiday, but there will be no early close for the bond market Thursday as has been the case previous years. However, it will still probably be a light afternoon in trading as traders head home for the long weekend. Oil prices will also be higher because of the holiday so that will affect the oil traders. My family is not planning on traveling for the 4th so increased fuel prices will not affect us as much as other people.

I hope AHK can get my personal production loan completed this week so the investor can buy it and the loan can be on its merry way. It closed on the 5th of June but is still stuck between the Title Co and Gold Financial getting the HUD-1 corrected. I have my fingers crossed that it will happen today, I would hate to have to tell a borrower that the house is not theirs after they have moved everything in because it closed almost a month ago :(

Well that will be all for now if you guys have any tips, hints or comments you want to post let me know and they will be put up. Thanks for reading and hope you enjoyed it.