May 20th, 2009 12:44 PM by Lehel Szucs
Wednesday's bond market has opened up slightly with no relevant economic data being released this morning. The stock markets are showing early gains with the Dow up 60 points and the Nasdaq up 22 points. The bond market is currently up3/32, which should keep this morning's rates at yesterday's level.
There is no relevant economic data scheduled for release today, however, the minutes from the last FOMC meeting will be posted this afternoon. Market participants will be looking for how Fed members voted during the last meeting and any comments about inflation concerns in the economy. The goal is to form a guess about when the Fed may make another move to help the economy. The minutes will be released at 2:00 PM ET, so if there is a market reaction to them it will be evident during afternoon trading.
The Labor Department will post weekly unemployment figures early tomorrow morning. They are expected to say that 640,000 new claims for benefits were f iled. This data is not considered to be important, so unless it varies greatly from analysts' forecasts, it likely will not influence mortgage rates.
The last data of the week comes late tomorrow morning with the release of April's Leading Economic Indicators (LEI) at 10:00 AM ET. This Conference Board report attempts to measure economic activity over the next three to six months. It is expected to show a fairly large increase of 0.6% from March's reading, meaning that economic activity is likely to gain momentum during the next few months. A decline would be good news for the bond market and mortgage rates, while a larger increase could cause mortgage rates to inch higher tomorrow.
There is no relevant data scheduled for release Friday, but there will be an early close in the bond market Friday afternoon ahead of the Memorial Day Holiday Monday. These early closes sometimes lead to additional volatility in bond prices as investors prepare for the lon g weekend and trading thins with many traders starting the weekend early.
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 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.
©Mortgage Commentary 2009