August 28th, 2020 10:46 AM by T. Fanning
Last Updated: 8/28/20Friday's bond market has opened in positive territory despite early stock gains and no major surprises in this morning's economic data, The Dow is currently up 42 points while the Nasdaq has gained 56 points. The bond market is currently up 12/32 (0.71%), but weakness late yesterday is going to keep this morning's mortgage rates close to Thursday's early pricing. Many lenders revised rates higher before the end of the day yesterday. If you saw an intraday increase, then you should see that move reversed in this morning's pricing.July's Personal Income and Outlays report was posted at 8:30 AM ET, revealing a 0.4% increase in income and 1.9% rise in spending. Both readings were stronger than expected, making them bad news for bonds and mortgage rates. However, the inflation index within the data that the Fed relies on as their primary gauge (PCE) came in weaker than expected. Softer inflation readings are good news for long-term securities such as mortgage bonds. That allows us to consider the data neutral for mortgage rates.The University of Michigan's revised Index of Consumer Sentiment for August was released at 10:00 AM ET this morning. It showed a reading of 74.1, up from the preliminary reading of 72.8. The increase means surveyed consumers felt a little better about their own finances than they did two weeks prior. Since rising sentiment usually means consumers are more likely to spend, fueling economic growth, the increase is slightly bad news for mortgage rates.Next week has fewer reports scheduled than this week but includes a couple of highly important releases such as the monthly Employment report. There are also a good number of public speaking engagements by current Fed members that will draw plenty of attention. Monday has nothing scheduled except for one of those Fed speeches. 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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