December 29th, 2017 9:52 AM by T. Fanning
Last Updated: 12/29/17Friday's bond market has opened in positive territory, looking to close the year on an encouraging note. Stocks are calm but showing minor losses of 15 points in the Dow and 11 points in the Nasdaq. The bond market is currently up 4/32 (2.42%), which should improve this morning's mortgage rates by approximately .125 of a discount point.Yesterday's 7-year Treasury Note auction followed Wednesday's 5-year Note sale with investor demand for the securities best labeled at an average level. Without an overly strong or poor demand from investors, the results had little impact on afternoon trading yesterday. That means mortgage rates were unaffected by the auction. The 10-year Note and 30-year Bond auctions, scheduled for two weeks from now, should have a heavier influence on bonds trading and mortgage pricing.There is nothing on today's calendar that is expected to have an impact on mortgage rates. It should be a pretty quiet day in the markets as some trader will likely be heading home for the holiday weekend. Today is a full trading for stocks but the bond market is expected to close at 2:00 PM ET today. All markets will be closed Monday for the New Year's Day holiday. It is fairly common to see some pressure in the bond market before holidays as investors sell holdings to protect themselves over the extended weekend. This scenario usually has only a minor influence, if any, on mortgage rates though.Next week doesn't bring us a large number of economic reports, but most of what is scheduled is important. There are two highly important monthly reports along with a couple that are moderately significant and the minutes from this month's FOMC meeting. Look for details on all of next week's activities in our weekly preview. Due to the holiday and the fact that Tuesday has nothing of relevance scheduled, the weekly preview and Tuesday morning's daily report will be combined.We would like to take this opportunity to wish everyone a wonderful, but safe holiday weekend and a Happy New Year!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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