Our Real Estate Blog

Mortgage Rates (1/10/2011)

January 11th, 2011 9:27 PM by Lehel S.

Monday’s bond market has opened in positive territory following early stock losses. The Dow is starting the week down 75 points while the Nasdaq has lost 11 points. The bond market is currently up 9/32, which should improve this morning’s mortgage rates by approximately .375 of a discount point over Friday’s morning pricing.

There is no relevant economic data scheduled today. If the major stock indexes extend this morning’s losses, we may see bond improvements and downward revisions to mortgage rates later today. However, if they recover their early losses, rates may revise slightly higher this afternoon.

The rest of the week brings us the release of seven pieces of economic data to digest along with two important Treasury auctions. All of the week’s events will take place between Wednesday afternoon and Friday morning. Until we get to Wednesday afternoon, look for the stock markets to have the biggest impact on bon d trading and mortgage rates.

The first economic data of the week is the Federal Reserve’s Beige Book report at 2:00 PM ET Wednesday. This report, which is named simply after the color of its cover, details economic conditions throughout the U.S. by region. Since the Fed relies heavily on it during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any surprises, particularly regarding inflation, unemployment or future hiring.

Overall, Friday is by far the most important day of the week with two major releases. The single most important report is probably the CPI, but the Retail Sales report is a close second. Both are considered to be of high importance, will be posted Friday morning and can heavily influence the markets. Therefore, I strongly recommend maintaining contact with your mortgage professional this week, especially the latter part if still floating an interest rate.< br />
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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 opinion 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. 
Posted in:General
Posted by Lehel S. on January 11th, 2011 9:27 PM



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