January 25th, 2019 10:56 PM by T. Fanning
Last Updated: 1/25/19Friday's bond market has opened in negative territory as this week's rollercoaster ride continues. Stocks are a big contributor to this morning's bond weakness with the Dow up 267 points and the Nasdaq up 71 points. The bond market is currently down 10/32 (2.74%), which cause this morning's mortgage rates to be slightly higher than Thursday's morning pricing.There is no relevant economic data being released today. Both reports that were on the calendar have fallen victim to the partial government shutdown (Durable Goods and New Home Sales). If we see an intraday revision to mortgage rates, it likely will be a result of a move in stocks. If the major indexes extended this morning's strong gains, we could see mortgage rates revise slightly lower before the end of the day. On the other hand, if they reversed course and to give back this morning's improvements, mortgage rates should benefit this afternoon.Next week is extremely busy in terms of economic reports and other events that are expected to influence mortgage rates. In fact, what are arguably the three most important reports are all set to be posted next week. Unfortunately, one of them likely will not happen due to the shutdown. But that still leaves us two highly important economic reports, along with the first FOMC meeting of the new year, which now also includes a press conference with Fed Chairman Powell. In addition to those main events, we also have a decent number of moderately important reports and a couple of Treasury auctions that have the potential to affect mortgage rates.Monday is the only day of the week that does not have economic data, but it does bring us the first of those two Treasury auctions that we will be watching. 5-year Notes will be sold Monday, followed by 7-year Notes on Tuesday. Look for details on all of the week's activities and Sunday evenings weekly preview. There is a strong possibility of seeing an extremely active week for the financial markets and mortgage rates.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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