August 9th, 2019 12:38 PM by T. Fanning
Last Updated: 8/9/19Friday's bond market has opened in positive territory following favorable inflation news. Stocks are showing losses of 101 points in the Dow and 60 points in the Nasdaq. The bond market is currently up 3/32 (1.71%), which with yesterday afternoon's strength should improve this morning's mortgage rates by approximately .125 of a discount point if comparing to Thursday's early pricing.Yesterday's 30-year Treasury Bond auction went pretty well, or at least better than Wednesday's sale did. The indicators showed a respectable level of interest in the securities. That helped push bond prices higher after results were posted at 1:00 PM ET, causing some lenders to improve rates intraday.July's Producer Price Index (PPI) was released this morning, revealing a 0.2% increase in the overall reading and a surprising decline of 0.1% in the more important core data. The overall reading pegged expectations but the core reading that excludes food and energy prices was weaker than the 0.2% increase that was forecasted. That makes the data good news for bonds and mortgage rates because bonds are more appealing to investors when inflation is subdued.Next week has a handful of economic reports scheduled that may influence mortgage rates. Two of them are considered highly important to the markets. There is nothing of relevance scheduled for Monday, so we can expect weekend news to drive trading as the new week starts, particularly talk about trade and China. 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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