YOUR Mortgage Minute -- October 1, 2009

Good Afternoon,

I hope your Thrusday is going great. It is a rainy day here in Central Iowa. Only 60 days remain for the first time home buyer tax credit, the clock continues to tick on this opportunity.

In the Markets today, Mortgage Bonds are trading higher in response to worse than expected employment data as well as weakness in Stocks.

In the news, Initial Jobless Claims increased more than expected, indicating ongoing weakness in the labor market. The ISM Manufacturing Index also came in slightly worse than expected. There was some good news, however, as Pending Home Sales were reported far above expectations and Personal Spending for August rose at its fastest monthly pace in almost 8 years, thanks in large part to the "Cash for Clunkers" program.

Currently, Mortgage Rates are still near all-time lows and present an incredible opportunity for a borrower. With the Federal Reserve's decision to cut back on buying mortgage back securities in the first quarter of 2010, rates will gradually return to the historical average 6-6.5% for a 30 year loan.

For now, I recommend floating into tomorrow's Jobs Report. But be prepared to lock if today's announcement of next week's Treasury auctions causes the markets to stir. If it does, I will certainly let you know. In the meantime, if there is ever anything that I can do for you, please let me know.