November 6th, 2020 12:50 PM by T. Fanning
Last Updated: 11/6/20Friday's bond market has opened in negative territory following stronger than predicted employment data. The stock markets are giving back a small portion of their recent gains with the Dow down 165 points and the Nasdaq down 141 points. The bond market is currently down 19/32 (0.83%), which should push this morning's mortgage rates higher by approximately .125 of a discount point compared to Thursday's pricing.This week's calendar closed with the release of October's Employment report at 8:30 AM ET. It revealed that 638,000 new jobs were added back to the economy and that the unemployment rate fell to 6.9% from September's 7.9%. There were bits of favorable data in the report, but the two headline readings are taking centerstage. Both numbers indicate the employment sector was stronger than thought last month, making the data bad news for bonds and mortgage rates.Next week has only a couple of monthly reports scheduled for release, but they include two important inflation readings. It is a holiday-shortened week due to the Veteran's Day holiday Wednesday. There is nothing of relevance set for Monday, meaning we can expect weekend and election news to drive trading. Stocks have been extremely active recently, so look for them to influence bond trading - especially if they go into selling mode. 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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