June 8th, 2018 9:29 AM by T. Fanning
Last Updated: 6/8/18Friday's bond market has opened down slightly with stocks doing the same as the markets wait for trade-related news from the G7 Summit. The Dow is currently down 17 points while the Nasdaq has lost 10 points. The bond market is currently down 2/32 (2.93%), but due to noticeable gains late Thursday, we should still see an improvement in this morning's mortgage rates of approximately .125 of a discount point if comparing to yesterday's early pricing.We saw a bizarre and unexpected favorable move in bonds early yesterday afternoon. Bonds suddenly rallied without much of an explanation, driving yields lower. The benchmark 10-year Treasury Note yield went from 2.99% in early trading to 2.91% around lunch time and held on to most of that gain the rest of the day (closing at 2.93%). The move itself is noticeable, but what is most surprising is that there was no clear reason for it. A couple of theories were floated with none being a clear answer. Regardless of the reasoning, many mortgage lenders revised rates lower yesterday afternoon to reflect the improvements.Today has nothing of importance scheduled for release. There is no reason to believe we will have a repeat rally today. In fact, because the 10-year closed above 2.92% yesterday and appears to be moving away from it this morning, reiterates that 2.92% is a strong resistance level. Without a good reason to break below, we can expect 2.92% to be remain as the lower end of our trading range. As long as it doesn't now move above 3.00%, mortgage rates are likely to stay close to current levels or slightly higher for the next week or so.Next week is going to be much busier than this week was in terms of economic releases and other events that are likely to influence mortgage rates. Besides the important inflation readings and retail sales data, there are also less important releases and the next FOMC meeting that is expected to bring an increase to key short-term interest rates. Monday is the only day with nothing scheduled. 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...Lock 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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