July 31st, 2020 11:04 AM by T. Fanning
Last Updated: 7/31/20Friday's bond market has opened down slightly despite weaker than expected economic news. Stocks are mixed with the Dow down 117 points and the Nasdaq up 14 points. The bond market is currently down 3/32 (0.55%), which should keep this morning's mortgage pricing close to Thursday's early rates.June's Personal Income and Outlays data kicked off this morning's batch of economic news. It showed that income fell 1.1% last month while spending rose 5.6%. The decline in income was larger than expected while spending fell a little short of forecasts. That makes both readings good news for bonds and mortgage rates. The PCE inflation index that the Fed uses as their preferred gauge of inflation within the economy matched expectations, showing it remains subdued.Also at 8:30 AM ET was the 2nd Quarter Employment Cost Index (ECI) that tracks employer costs for wages and benefits. It revealed a 0.5% rise compared to forecasts of a 0.6%. The slightly softer than expected reading indicates employer costs for wages and benefits rose during the April through June months but not as much as thought. That allows us to also consider this data slightly favorable for the bond and mortgage markets.Finally, the University of Michigan posted their revised Index of Consumer Sentiment for July at 10:00 AM ET. It came in at 72.5, down from the preliminary reading of 73.2, indicating consumer confidence in their own financial situations was a bit weaker than earlier this month. Since waning confidence usually translates into softer levels of consumer spending, we should consider this data favorable for mortgage rates.Next week has several very important economic releases scheduled, including the ISM manufacturing index Monday and the almighty monthly Employment report Friday morning. In between there a couple of moderately important reports. 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...Float 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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