Our Real Estate Blog

Mortgage Rates (12/31/2010)

December 31st, 2010 4:25 PM by Lehel S.

Friday’s bond market has opened in positive territory as investors look to close the year out on a positive note. The stock markets are showing minor losses of 18 points in the Dow and 11 points in the Nasdaq. The bond market is currently up 10/32, which should improve this morning’s mortgage rates by approximately .125 of a discount point.

There is nothing of importance this morning, making it highly likely that we will crawl into the end of the year. As expected, trading is extremely light this morning and there is no reason to think that will change before today’s 2:00 PM ET close. The stock markets are technically open all day, but it doesn’t look many traders went to work. We will probably see a little fluctuation in the major indexes and bond prices, but I would be highly surprised if we saw significant movement or an intra-day change to mortgage rates. 

Next week brings us the release of several relevant economic reports. The week opens and closes with important reports, giving us a good look at current economic conditions. Monday has December’s Institute for Supply Management’s (ISM) manufacturing index. This is usually the first most current report we see month. It is posted the first business day of the month and covers the preceding month. The data tracks manufacturer sentiment, giving us an indication of manufacturing sector strength. It is considered to be one of the more important reports we see each month.

The week closes next Friday with the almighty monthly Employment report. In between the ISM index and Employment numbers there are a couple more events scheduled, including the minutes from the past FOMC meeting and a couple of less important economic reports. Late in the week, Fed Chairman Bernanke will speak, drawing the close attention of the markets also. I am actually looking forward to some of this key data as I still believe December&rs quo;s spike in rates was an overreaction. I suspect we will still results that remind us we still have significant hurdles facing the economy and this month’s optimism was premature. If this is the case, we should see mortgage rates move lower next week.

Look for more details on next week’s events in Sunday’s weekly preview. I would like to take this opportunity to wish everyone and theirs a wonderful and safe holiday weekend and a prosperous new year!

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 31st, 2010 4:25 PM

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