October 21st, 2009 11:03 AM by Lehel S.
Wednesday's bond market has opened well in negative territory following despite no relevant economic news being released. The stock markets are showing gains with the Dow up 48 points and the Nasdaq up 16 points. The bond market is currently down 16/32, which will likely push this morning's mortgage rates higher by approximately .375 of a discount point.
There was no relevant economic data posted this morning, but this afternoon brings us the release of the Fed Beige Book. This 2:00 PM release details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during their FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation or economic growth from the last release, we could see mortgage rates revise higher this afternoon.
The Labor Department will give us last week's unemployment numbers early tomorrow morning. Analysts are expecting it to show that 517,000 new claims for benefits were filed last week. A larger number would be favorable for bonds, but this data is not important enough to heavily influence mortgage rates.
The next monthly report is September's Leading Economic Indicators (LEI) late tomorrow morning. This index attempts to measure future economic activity, particularly during the next three to six months. Current forecasts are calling for an increase of 0.9% from August's reading. This would indicate that economic activity is likely to increase fairly rapidly. That would be bad news for the bond market and mortgage rates, but this report is considered to be only moderately important.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opi nion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.