June 19th, 2008 11:20 AM by Lehel Szucs
Thursday's bond market has opened in negative territory as interest turns to stocks. The stock markets are currently mixed with the Dow up 16 points and the Nasdaq down a few points. The bond market is currently down 8/32, but we will likely still see an improvement in this morning's mortgage rates of approximately .125 of a discount point due to strength in bonds late yesterday.
The first piece of news released today was last week's unemployment numbers from the Labor Department. They reported that 381,000 new claims for benefits were filed last week. This was a decline form the previous week, but still higher than the 375,000 that was expected. This can be considered a bit of good news for bonds, but the truth is that this data is generally considered to be of low importance because it tracks only a week's worth of claims.
May's Leading Economic Indicators (LEI) was released this morning by the Conference Board, who is a New York-based busin ess research group. They said that the indicators rose 0.1%, slightly exceeding forecasts. This means that economic activity is being predicted to rise slightly over the next three to six months.
There is no relevant economic news scheduled for release tomorrow, so look for oil prices and stock movement to be the biggest influences on bond trading and mortgage rates. I am expecting to see a fairly quiet day in rates, but still fear there are more increases to mortgage rates likely before we see much of a decline. Therefore, I am holding the lock recommendations.
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 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