February 9th, 2018 2:09 PM by T. Fanning
Last Updated: 2/9/18Friday's bond market has opened in negative territory as stocks rebound from yesterday's 1,032-point loss in the Dow, extending this wild rollercoaster ride. The Dow is currently up 294 points while the Nasdaq has gained 90 points. The bond market is currently down 7/32 (2.85%), but due to a rally in bonds as stocks sank Thursday, we still should see an improvement in this morning's mortgage rates of slightly less than .125 of a discount point.There is nothing of importance being released today. We are just seeing more of this week's extreme volatility in the markets. It is safe to assume that we will get more of the same as the day progresses. If your lender was one of the many that improved pricing yesterday afternoon, then you should see less of an improvement or possibly an increase this morning, depending on the size of yesterday's adjustment. The net difference in most circumstances should be slightly lower than Thursday's early rates.Yesterday's 30-year Treasury Bond auction was similar to Wednesday's 10-year Note sale. The benchmarks we use to gauge investor demand showed an average level of interest in the securities. Not overly strong but not weak either. The bond market did react slightly negative just after results were posted Thursday. However, it wasn't enough to cause upward revisions to mortgage rates.Next week brings us a good-sized batch of economic releases, including three highly important reports. However, they don't start until mid-week. There is nothing of importance scheduled for Monday or Tuesday, meaning we can expect weekend news and stock volatility to drive bond trading and mortgage rates as the new week begins. Look for details on next week's calendar 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
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