May 1st, 2020 12:46 PM by T. Fanning
Last Updated: 5/1/20Friday's bond market has opened in positive territory following news that President Trump is considering trade action against China for their early handling of the coronavirus. Possibly resurrecting a trade war is also causing weakness in stocks. The Dow is currently down 456 points while the Nasdaq has lost 169 points. The bond market is currently up 4/32 (0.63%), which should keep this morning's mortgage rates close to Thursday's early pricing.This morning's sole relevant economic report was April's manufacturing index from the Institute for Supply Management (ISM) at 10:00 AM ET. They announced a reading of 41.5 that was down from March's 49.1 but higher than the 39.0 that was expected. The reading indicates more surveyed manufacturing executives felt business worsened in the month than did in March. Since that is considered to be a sign of significant weakness in the sector, we can put a favorable label on the news. However, limiting its influence this morning is the fact that it came in a little higher than expected.Next week does not have a lot scheduled but most of what is on the calendar is considered highly relevant to the financial and mortgage markets. Monday does have something moderately important set for release with March's Factory Orders data. The big news will come at the end of the week when April's Employment report is released. Look for details on all of next week's activities 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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