Another new year has slowly rolled in…. The greatest financial headline of the first weekday of year 2009 was the release of the ISM manufacturing index. It is a key financial indicator. Numbers which have been released today, showed that the extent of downfall of the performance of manufacturing activity in December was even more than expected. Actually, the index fell from 36.2 points in November to 32.4 points, which is the lowest level it has touched since 1980.
In connection with this, I have a great news which I definitely want to share with those who aspire to own their dream home one day: Mortgage rates are at historic lows. The news from all the financial sectors may continue to be dismal even after the commencement of Mr. Obama’s turn as president, but this mortgage rate, we expect, would remain unaffected. This news, indeed, would go in favor of all home buyers and owners of homes who are looking to refinance.
What is ISM index?
“ISM” stands for the Institute for Supply Management. These numbers are generally released on the first business day of the month with data from the last month. It considers employment, new orders, production, inventories and five other important indicators. The number which is less than 50, gives the indication of contraction.
Importance of ISM index
ISM index has great importance with respect to finance markets and overall economic scenario. It always moves the financial markets. This index value is considered the best snapshot for the condition of the factory and industrial plant sector.
Impact of this on mortgage rate
This news, which is apparently considered negative for broader economy has been converted into a great and favorable dominant factor for the rates of mortgage currently running in market. And as a consequence, mortgage rates offered in market have fallen down to record lowest points. These rates had not decreased to such lows in years. If the economic structure is slow and unstable, mortgage rates would automatically be lowered to encourage you to participate in the economy. So this is a golden time if you are looking to buy home or refinance, because the market stands on your side. So if you rush to lock in such low mortgage rates today, it means you can cash in on this most favorable, appropriate and historic point in our economy’s transition. What are you waiting for?