May 24th, 2008 9:30 AM by Lehel Szucs
Friday's bond market has opened in positive territory as stocks react negatively to rising oil prices. The stock markets are showing sizable losses with the Dow down 111 points and the Nasdaq down 27 points. The bond market is currently up 14/32, which will likely improve this morning's mortgage rates by approximately .1250 - .250 of a discount point.
The National Association of Realtors gave us today's only semi-relevant economic news with the release of April's Existing Home Sales report. It revealed a decline in sales, but not as much of a drop as expected. However, the data has not influenced bond trading enough to affect mortgage rates this morning.
The bond market will close at 2:00 PM today ahead of Monday's Memorial Day Holiday and will remain closed until Tuesday morning. The stock markets will also be closed Monday. I don't think that this will have an impact on this afternoon's mortgage rates.
Next week brings us the releas e of several pieces of important economic data. There are relevant reports scheduled for release each of the four business days, so we will likely see some volatility in rates. 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 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 2008