Our Real Estate Blog

Mortgage Rates (6/21/2010)

June 21st, 2010 9:50 AM by Lehel S.

Monday's bond market has opened in negative territory following early stock strength. The stock markets opened the week with strong gains after news from China about their currency that was taken as extremely favorable for the international markets. The U.S. stock markets are following overseas strength with the Dow up 101 points and the Nasdaq up 14 points. These gains in stocks have pushed the bond market down 15/32, but we should still see an improvement in this morning's mortgage rates of approximately .125 of a discount point over Friday's morning rates due to strength late Friday.

There is no relevant economic news scheduled for release today, allowing the stock markets to heavily influence bond trading and mortgage rates. There are five economic reports scheduled for release the rest of the week in addition to another Federal Open Market Committee (FOMC) meeting and two Treasury auctions that may affect mortgage rates.

Tomorrow brings us the first data with the release of May's Existing Home Sales report. The National Association of Realtors will give us figures on home resales late tomorrow morning. This data helps us measure housing sector strength and mortgage credit demand, but it usually takes a large variance from forecasts for it to cause a noticeable change to mortgage rates. It is expected to show an increase in sales from April to May.

Overall, it appears today may not be the quietest day of the week after all. We will likely see more volatility this week, particularly Wednesday afternoon when the first relevant Treasury auction is finished and the FOMC meeting adjourns. The same goes for Thursday with the week's most important data being released during morning hours and the 7-year Note auction results are posted early afternoon. So, while today is an active day for rates, it probably will not be the only one this week. Proceeding with caution would be a wise move 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 June 21st, 2010 9:50 AM

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