December 27th, 2019 1:48 PM by T. Fanning
Last Updated: 12/27/19Friday's bond market has opened in positive territory even though trading is light and many market participants are home for the extended holiday. The major stock indexes are mixed with the Dow up 44 points and the Nasdaq down 3 points. The bond market is currently up 5/32 (1.87%), which should improve this morning's mortgage rates by approximately .125 of a discount point.Yesterday's 7-year Treasury Note auction followed suit of Tuesday's 5-year Note sale with a strong demand also. The benchmarks used to gauge investor demand showed strong interest in the securities just as Tuesday's auction did. Bonds didn't have much of a reaction to yesterday's results though.The holiday week closes today with nothing scheduled that is expected to affect mortgage pricing. This morning's gains are good news for mortgage shoppers, but there is no apparent cause for the move. Therefore, we can't put too much faith in them until the holidays pass and trading volume is back to normal.Next week will also be shortened by a holiday trading schedule but it does include some important economic data for the markets to digest. The calendar shows one moderately important release Tuesday and a highly important report Friday. Monday has nothing scheduled that is expected to influence mortgage rates. Look for details on next week's schedule and economic releases 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
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.