Today’s Mortgage Rates Impacted by Durable Goods Order Numbers and Consumer Sentiment

September 25, 2009

Daily Mortgage Updates

A&N Mortgage Logo25 September 2009 ? Today the bond market opened up 3bps and continued to improve and is currently at 15bps. Durable Goods Orders for August unexpectedly fell 2.4% for the largest decline since January. This was a big miss from projections, as mentioned in previous updates, the increase in orders may have been inventories falling to all time lows and it was a one-time replenishing. We will continue to pay close attention to this number going forward. With a weak labor market and anemic wage growth, consumers are not making a lot of Durable Goods purchases. Durable Goods are big ticket purchases meant to last more than three years, for example, flat screen TV?s, furniture and appliances. Until we see the labor market improve we are not likely to see improvement in Durable Goods Orders.

Consumer Sentiment was reported at 73.5 better than expectations of 70.5. This improvement is probably a direct result of the huge rise in the stock market. On another note, new home sales were reported at 429,000, which is slightly lower than expectations of 441,000. The inventory of unsold homes dropped slightly to 7.3% however I have stated before that the banks are holding onto foreclosures and we may see a whole new slew of sales coming onto the market.

The 30 year rate is at 4.875% (apr 4.909) and the 15 year rate is at 4.375% (apr 4.433).

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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