Our Real Estate Blog

Mortgage Rates (3/8/2011)

March 8th, 2011 9:37 AM by Lehel S.

Tuesday’s bond market has opened in negative territory with stocks posting early gains this morning. The Dow is currently up 70 points while the Nasdaq has gained 14 points. The bond market is currently down 6/32, but we may not see an increase in this morning’s mortgage pricing due to strength late yesterday.

There is no relevant economic data scheduled for release again today. The first event of the week is the 10-year Treasury Note auction tomorrow. The 30-year bond sale will be held Thursday. Results of both sales will be posted at 1:00 PM ET on the sale days. If investor demand was high, we may see bonds rally during afternoon trading as it would indicate that investors still have an appetite for longer-term securities. However, weak demand in the sale could lead to selling and an increase to mortgage rates. 

The week’s economic data will be posted Thursday and Friday. Until then, look for oil prices and movement sin sto cks to influence bond trading and mortgage rates. If stock prices continue to move higher, I suspect we will see weakness in bonds and upward changes to mortgage rates.

Friday will probably be the most important day of the week with the Retail Sales report due, while the calmest day could be tomorrow, depending on the stock markets. I am expecting to see the most movement in rates the latter part of the week, so please be careful 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... 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 March 8th, 2011 9:37 AM

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