Last Updated: 5/18/18Friday's bond market has opened in positive territory despite a lack of relevant economic data. The major stock indexes are mixed but calm with the Dow up 11 points and the Nasdaq down 23 points. The bond market is currently up 8/32 (3.08%), which should improve this morning's mortgage rates by approximately .125 of a discount point compared to Thursday's morning pricing.There is nothing of importance taking place today that is likely to affect mortgage rates. There were a couple of Fed member speaking engagements this morning, but they failed to yield any surprises that the markets were interested in. This morning's bond gains were a pleasant surprise after such a bad week. However, be careful if floating an interest rate as one good day doesn't mean it is the end of the negative trend.Next week beings us the release of a couple of housing-related reports and some pretty important manufacturing data. In addition to those reports, we also will get the minutes from the most recent FOMC meeting and have two Treasury auctions taking place. Monday has nothing scheduled, so expect weekend news to be the cause of a noticeable move in bonds or mortgage rates. It will be interesting to see if today's gains will carry into next week's trading.Look for details on all of next week's activities in Sunday evening's weekly preview.If I were considering financing/refinancing a home, I would....Lock if my closing were taking place within 7 days...Lock if my closing were taking place between 8 and 20 days...Lock if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.**http://www.hlmcolorado.com/DailyRateAdvisory
Last Updated: 5/11/18Friday's bond market has opened flat as investors look to quietly close out the week. The major stock indexes are mixed with the Dow up 94 points and the Nasdaq nearly unchanged. The bond market is currently down 1/32 (2.96%), but strength late yesterday should allow a slight improvement in this morning's mortgage rates if comparing to Thursday's early pricing.Yesterday's 30-year Bond auction went well with several benchmarks pointing towards a high interest level in the securities. The bond market improved a little after the results were posted at 1:00 PM ET, but not enough to cause intraday lender revisions. Most mortgage lenders likely waited for this morning's rates to reflect those small gains.Today's only economic data worth watching was May's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 98.8, matching April's final reading. This data gives us an idea of consumer willingness to spend. Analysts were expecting to see a 98.0 reading, meaning surveyed consumers were a tad more optimistic about their own financial situations than many had thought. That makes the data slightly negative for bonds and mortgage rates because higher levels of confidence usually translate into stronger levels of consumer spending that fuels economic growth. However, because this is considered to only be a moderately influential report, its impact on today's mortgage rates has been minimal.Next week has a few relevant economic reports scheduled for release, one of which is considered very important. All of the data comes during the middle days, leaving nothing set for Monday or Friday. There are some Fed speaking engagements scheduled also that have the potential to affect the markets and mortgage rates. Look for details on next week's events in Sunday evening's weekly preview. If I were considering financing/refinancing a home, I would....Lock if my closing were taking place within 7 days...Lock if my closing were taking place between 8 and 20 days...Lock if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.**http://www.hlmcolorado.com/DailyRateAdvisory
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