February 19th, 2010 10:31 AM by Lehel S.
Friday's bond market has opened relatively flat despite weaker than expected inflation data. The stock markets are showing minor gains with the Dow up 16 points and the Nasdaq up 2 points. The bond market is currently nearly unchanged from yesterday's close, but we will still see an increase of approximately .375 of a discount point in this morning's mortgage rates compared to yesterday's morning pricing. This is mostly due to weakness in bonds late yesterday.
The Labor Department posted January's Consumer Price Index (CPI) this morning, showing a 0.2% increase in the overall reading and a 0.1% decline in the more important core reading. Both were below forecasts, meaning that inflationary pressures were calmer at the consumer level of the economy last month than many had thought. This can be considered favorable news for the bond market and mortgage rates, however, this morning's news has failed to influence bond buying.
Next week brings us a bunch of relevant economic reports for the markets to digest, but several of them are considered to be lower-tier in regards to importance in the markets. There is no relevant economic data scheduled for release Monday, but Fed Chairman Bernanke will be speaking to the House Financial Services Committee at 11:00 AM ET. As always, his words have the potential influence the markets and mortgage pricing.
There are relevant economic data postings every other day of the week. It appears that as the week progresses, it gets more and more active with economic releases and other events. In addition to the economic reports, there are two semi-important Treasury auctions and second and third appearances by Chairman Bernanke when he gives his semi-annual updates to Congress on the status of the economy. This makes the possibility of seeing changes to mortgage rates highly likely next week. 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... 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.