January 20th, 2017 8:41 AM by T. Fanning
Last Updated: 1/20/17Friday's bond market has opened in negative territory again as the recent negative momentum continues. The major stock indexes are showing solid gains with the Dow up 92 points and the Nasdaq up 27 points. The bond market is currently down 8/32 (2.49%), which should keep this morning's mortgage rates close to Thursday's morning levels.There is no relevant economic data being released today. In the news is a Fed member predicting the Fed will make three rate increases this year, but that wasn't much of a surprise. We have the Presidential Inauguration today also, although it likely will not have an impact on today's trading.Bond yields have made a pretty quick move upward the past few days, again testing a fairly important resistance level at 2.50%. Since mortgage rates tend to track bond yields, this has led to a rise in rates also. If 2.50% fails, it could be a rapid move to the mid 2.6's, meaning further increases in mortgage pricing. Therefore, please maintain contact with your mortgage professional if closing in the near future and still floating an interest rate.On the other hand, it is worth noting that stocks may be in the forefront soon. The Dow has tried to break 20,000 multiple times and has failed to do so. Another attempt without success could lead to a pullback in stocks, which usually benefits bonds as investors seek safety from the selling. That is just a theory at this point, but if accurate should come into play sooner than later.Next week has a handful of relevant economic reports set for release, but the most important ones will come late in the week. In addition to the data, we also have a couple of Treasury auctions mid-week that have the potential to affect mortgage rates. None of next week's events are set for Monday, so it is a safe bet that weekend news (possibly political), will be the biggest force behind the markets the early days. 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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