Our Real Estate Blog

Mortgage Rates (12/24/2009)

December 24th, 2009 8:28 AM by Lehel S.

Thursday's bond market has opened in negative territory following the release of mixed economic news and early stock gains. The stock markets are showing relatively minor gains with the Dow up 46 points and the Nasdaq up 10 points. The bond market is currently down 6/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point compared to yesterday's morning rates.

The Commerce Department announced early this morning that new orders for durable goods rose 0.2% last month. This was lower than the 0.5% increase that was expected, however, if more volatile transportation-related orders were excluded, we would have seen a 2.0% increase. Analysts were expecting that reading to rise only 1.1%. The two readings more or less wash each other out, minimizing the impact they will have on today's mortgage rates.

Also released this morning was last week's unemployment figures. The Labor Department reported that 452,000 new claims for unemployment benefits were filed last week. This was a lower total than the 470,000 that was expected, but since this data tracks only a single week's worth of claims its influence on bond trading and mortgage rates will be minimal.

The stock and bond markets will close early today ahead of the Christmas Day holiday and will remain closed Friday. They will reopen Monday morning for regular trading hours. There will be no update to this report tomorrow but Sunday's weekly preview will be on schedule.

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 December 24th, 2009 8:28 AM

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