Our Real Estate Blog

Mortgage Rates (1/2/2009)

January 2nd, 2009 11:41 AM by Lehel Szucs

Friday's bond market has opened flat despite weaker than expected economic news. The stock markets are starting the new year in positive ground with the Dow up 122 points and the Nasdaq up 22 points. The bond market is currently almost unchanged from Wednesday's close, but we will likely still see an increase in this morning's mortgage rates of approximately .250 of a discount point.

Today's only economic news was the Institute for Supply Management's (ISM) manufacturing index. It showed a reading of 32.4, which was its lowest reading since June 1980. Analysts were expecting to see a reading of 35.4, meaning that manufacturer sentiment was weaker than many had thought. This is favorable news for bonds but due partly to this morning's stock gains, this data has failed to push mortgage rates lower.

The bond market will close early again today, therefore, I don't believe we will see much of an improvement in today's rates. In fact, we may see so me additional pressure on bonds as traders close the shortened week. This may lead to upward revisions to mortgage rates before today's 2:00 PM close.

Next week is fairly busy in terms of economic releases. There is no relevant news scheduled for release Monday, but the rest of the week brings us the release of several reports that may affect mortgage rates including December's Employment report next Friday. Look for more details on next week's events in Sunday's weekly preview.

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... Lock 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.

©Mortgage Commentary 2009

Posted in:General
Posted by Lehel Szucs on January 2nd, 2009 11:41 AM



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