December 23rd, 2016 9:29 AM by T. Fanning
Last Updated: 12/23/16Friday's bond market has opened in positive territory as the week comes to a close. The stock markets are flat with the Dow up 5 points and the Nasdaq up 4 points. The bond market is currently up 5/32 (2.53%), which should improve this morning's mortgage rates slightly.The first of today's two relevant economic reports was the revised University of Michigan Index of Consumer Sentiment for December at 10:00 AM ET. It showed a reading of 98.2, up slightly from the preliminary reading of 98.0 and pegging forecasts. This means that surveyed consumers were just slightly more confident in their own financial situations than earlier this month. While that is technically bad news for bonds and mortgage rates, it was such a small move that it has had little impact on today's trading.November's New Home Sales data was also posted late this morning, revealing a 5.2% increase in sales of newly constructed homes. This was a larger increase in sales than many had expected. Since it is a sign of housing sector strength, we should consider the data negative for mortgage rates. Fortunately though, this report covers a smaller portion of the housing market, so its impact on today's mortgage pricing has been minimal.The bond market will close at 2:00 PM ET today ahead of Sunday's Christmas Day holiday while stocks are open for a full day of trading. All the financial markets will be closed Monday in observance and will reopen for regular trading hours Tuesday. It is fairly common for some traders to sell small portions of their holdings before a holiday or long weekend to protect themselves from unforeseen events that may take place while U.S. markets are closed. This may or may not influence mortgage rates, but the possibility does exist.Next week doesn't have much scheduled that is expected to influence bond trading and mortgage pricing. There appears to be only one monthly report for the markets to digest in addition to a couple of moderately relevant Treasury auctions. Due to the Sunday holiday, Monday closing and lack of events set next week, we will post the weekly preview Monday instead of the traditional Sunday evening. We would also like to take this opportunity to wish you and yours a wonderful holiday!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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