February 22nd, 2010 2:07 PM by Lehel S.
Monday's bond market has opened down slightly despite little action in the stock markets. The Dow is currently down 10 points and the Nasdaq nearly unchanged from Friday's close. The bond market is currently down 4/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
There was no relevant economic data posted this morning. We do, however, have Congressional testimony by Chairman Bernanke late this morning. He will be speaking to a House Financial committee about employment growth and whether further stimulus is needed. These are hot topics so his words may influence the markets and possibly mortgage rates.
Tomorrow morning brings us the first of this week's data with the release of February's Consumer Confidence Index (CCI) during late morning trading. This Conference Board index measures consumer confidence in their personal financial situations, giving us a measurement of consumer willingnes s to spend. Since consumer spending makes up two-thirds of the economy, related data is considered important in terms of gauging economic activity. It is expected to show a decline in confidence from 55.9 in January to 55.0 this month. A lower reading would be considered good news for bonds and mortgage rates.
Overall, look for plenty of movement in bond prices and mortgage rates this week. I think we will see the most movement either Wednesday or Thursday, but Friday may be fairly active also. This would be a very good week to maintain contact with your mortgage professional, especially if still floating an interest rate.
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 w ould 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.