February 2nd, 2010 9:49 AM by Lehel S.
Tuesday's bond market has opened flat with no relevant economic data on tap. The stock markets are showing gains with the Dow up 54 points and the Nasdaq up 7 points. The bond market is currently up 2/32, which will likely keep this morning's mortgage rates at yesterday's levels.
There is no relevant economic data scheduled for release today. Neither of the two speaking engagements were market movers. Treasury Secretary Geithner spoke before a Senate Finance Committee about the U.S. budget while Paul Volcker, who is the Chairman of the President's Economic Recovery Advisory Board, spoke to the Senate Bank Committee about high-risk banking activities. Neither has resulted on any market movements.
Tomorrow's only data is not likely to affect mortgage rates. The Institute for Supply Management will post their services index late tomorrow morning. This is the same organization that posted Monday's manufacturing index that is considered to be infl uential on the markets. Tomorrow's index surveys service providers rather than manufacturers. But unless we see a wide variance from the 50.9 reading that is expected, I don't see mortgage rates reacting to its results.
Thursday brings us the release of two reports to watch. Employee Productivity and Costs data for the 4th quarter will be released early Thursday morning. It can cause some movement in the bond market, but should have a minimal impact on mortgage pricing. If it varies greatly from analysts' forecasts of a 6.0% increase, we may see some movement in mortgage rates. However, the markets will be much more interested in Friday's data.
Late Thursday morning, December's Factory Orders data will be posted. It is similar to last week's Durable Goods Orders release in giving us a measurement of manufacturing sector strength, but this data includes new orders for both durable and non-durable goods. It is one of the less important reports of the week, but can influence mortgage pricing if it varies greatly from forecasts.
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.