April 9th, 2010 11:07 AM by Lehel S.
Friday's bond market has opened down slightly following early gains in stocks. The stock markets are looking to close the week with a positive day as the Dow is up 49 points and the Nasdaq has inched higher by 4 points. The bond market is currently down 5/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.
There is no relevant economic data scheduled for release today. As expected, the stock markets are helping direct the bond market. If stocks move higher, we may see bonds move lower later today enough to possibly cause upward revisions to mortgage pricing. If stocks remain near current levels, we should see mortgage rates follow suit.
Yesterday's 30-year Bond auction went pretty well. There are several different measurements of whether a sale such as these go well or poorly. Many of the key stats of yesterday's sale would mean it was met with a strong demand, while only a couple measurem ents contradict that. But overall, the sale did not go poorly, which in itself is great news for the broader bond market and mortgage rates.
Next week brings us an abundance of economic data and reports that are relevant to mortgage rates. None of them are scheduled to be posted Monday and the week's least important report is Tuesday's only data. But between Wednesday and Friday we will get an extremely important inflation reading and a key measurement of consumer spending along with several other reports. We can expect to see the most movement in rates during the middle to latter part of the week, but 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... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place ove r 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.