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Ryan’s Mortgage Blog:

So I wanted to Blog a little later in the week this time because I knew there was a lot going on and I wanted to wait to see what happened. It turns out most rates did come down a bit based on the news I am about to share with you that was emailed to me this morning. I’ve been receiving these daily commentary emails from around the industry for a long time now and this has been one of the more enjoyable ones. I normally don’t get excited over these commentaries because it seems like every day there is a new report coming out or some kind of news that will impact rates that will void the news from the day before. I will admit I did this morning because I saw good news for rates more than once! On the flip side, when rates are forecasted to lower like this usually that means there is something wrong somewhere else, so some people may think the following information is not good news depending on what their profession is or where their investments are. Here it is:

Thursday’s bond market has opened up sharply following a weaker than expected manufacturing report and large stock losses. The stock markets are down significantly with the Dow losing 220 points and the Nasdaq down 47 points. The bond market is currently up 22/32, which should improve this morning’s mortgage rates by approximately .250 – .375 of a discount point.Today’s big news came from the Commerce Department who reported that new orders for big-ticket items rose 1.4% last month, falling short of expectations. The release also revised May’s orders lower by 0.4%, indicating that manufacturing activity was weaker than expected both months. This is good news for bonds and mortgage rates.June’s New Home Sales was also posted this morning, showing a much larger decline in sales than was expected. This is also good news for bonds and mortgage rates.Tomorrow morning brings us the release of the single most important report we see regularly. The quarterly Gross Domestic Product (GDP) is considered to be the best indicator of economic growth. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. Current forecasts are estimating to see a 3.2% pace. A larger increase will probably hurt bond prices, leading to higher mortgage rates. But a smaller increase would likely fuel a bond market rally.

As always, give me a call if you have any questions or comments…805-540-0866 or

PS – Live on the Rocks concert series has started at the Cliff’s Resort in Shell Beach on Sundays.

Written by Keith Byrd - Go to Keith's Website/Profile