November 11th, 2016 11:22 AM by T. Fanning
Last Updated: 11/11/16The bond market is closed today in observance of the Veteran's Day holiday and will reopen Monday morning. However, the stock markets are open today and are showing minor losses of 10 points in the Dow and 3 points in the Nasdaq. We did see weakness in bonds late yesterday, causing many lenders to revise rates higher. If your lender is open for business today and issues new rates, you should see them be approximately .125 of a discount point higher than Thursday's morning pricing.Yesterday's 30-year Treasury Bond auction went poorly as it was expected to do. However, the heavy selling in bonds did not start until well after the results of the sale were posted. This means the auction didn't influence bond trading or mortgage rates. The weakness came as part of the overall post-election negative momentum in bonds. I am sure there was also some pre-holiday selling involved as investors protect themselves over the long weekend.Despite the holiday, there was a piece of relevant economic news posted this morning. November's preliminary reading of the University of Michigan's Index of Consumer Sentiment was released just before 10:00 AM ET, showing a reading of 91.6. This was well above expectations of 87.5 and a sizable increase from the previous reading of 87.2. That means surveyed consumers were much more optimistic about their own financial and employment situations than many had thought. Because rising confidence usually translates into stronger levels of consumer spending, this is bad news for bonds and mortgage rates.Next week does have several important economic reports in addition to a lot of Fed member speaking engagements. I don't see anything set for Monday that we need to be concerned with except a couple of those speeches. Look for details on all of next week's mortgage-relevant events 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...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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