Our Real Estate Blog

Mortgage Rates (12/8/2008)

December 9th, 2008 10:10 AM by Lehel Szucs

Monday's bond market has opened in positive despite early stock gains. The stock markets are starting the week off strong with the Dow up 276 points and the Nasdaq up 45 points. The bond market is currently up 7/32, but we will still see an increase in this morning's mortgage rates of approximately .500 of a discount due to weakness late Friday.

This week is moderately busy in terms of the number of economic releases scheduled for release. There are four on the agenda but two of them are considered to be very important that can heavily influence the markets and mortgage pricing. In addition, there is a 10-year Treasury Note auction Thursday that may hurt or help boost bond prices, depending on how strong of a demand there is in the sale. Since all of the data is scheduled for release Thursday and Friday, the most movement in rates will likely be the latter part of the week.

There is no relevant economic news scheduled for release today, tomorrow or Wednesday. The first data is October's Goods and Services Trade Balance report early Thursday morning. This report gives the size of the U.S. trade deficit, but it is the week's least important release. It is expected to show a $54.0 billion trade deficit. Unless it varies greatly from forecasts, I don't expect it to affect mortgage pricing.

Overall, expect to see a pretty volatile week in the financial markets and mortgage pricing with the most movement Thursday and Friday. Friday's Retail Sales and PPI reports can cause a great deal of movement in rates. Due to the expected volatility, I am holding the current lock recommendations. However, please maintain constant contact with your mortgage professional if you have not locked an interest rate yet.

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... Lock 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 2008

Posted in:General
Posted by Lehel Szucs on December 9th, 2008 10:10 AM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog: