June 30th, 2017 1:45 PM by T. Fanning
Last Updated: 6/30/17Friday's bond market has opened in negative territory following unfavorable economic news and a rebound in stocks. The major stock indexes are recovering some of yesterday's heavy selling, pushing the Dow up 79 points and the Nasdaq up 2 points. The bond market is currently down 4/32 (2.27%), which should keep this morning's mortgage rates at yesterday's early levels. If your lender improved pricing intraday yesterday, you may see a slight increase in this morning's rates.There were two economic reports released this morning. The first was May's Personal Income and Outlays data at 8:30 AM ET. The Commerce Department announced a 0.4% in the income reading and a 0.1% increase in spending. The income reading was a bit stronger than expected (0.3%), meaning consumers had more money to spend. However, the rise in spending matched forecasts. Therefore, we can consider the data neutral to slightly negative for bonds and mortgage rates.The final relevant report of the week was the University of Michigan's revised Index of Consumer Sentiment for June. It came in at 95.1, exceeding the 94.5 that was expected. The higher reading means surveyed consumers were more optimistic about their own financial and employment situations than many had thought. Since rising confidence usually translates into stronger levels of consumer spending, this is bad news for the bond and mortgage markets.Next week is a holiday-shortened week that brings us some major economic data. The week starts with one of those highly important reports late Monday when June's ISM manufacturing index will be released. The stock and bond markets will close early Monday ahead of the Independence Day holiday, but many traders will likely be out of the office as part of the long weekend. That could add to the volatility that the ISM report may cause. Look for details on the week's busy 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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