June 7th, 2010 12:27 PM by Lehel S.
Monday's bond market has opened flat following a relative calm opening in stocks. The stock markets are kicking the week off in positive ground with the Dow up 23 points and the Nasdaq up 4 points. The bond market is currently up 2/32, which should keep this morning's mortgage rates at Friday's levels.
There is no relevant economic data scheduled for release today or tomorrow, leaving bond prices and mortgage rates to the influence of the stock markets. The rest of the week brings us the release of four pieces of data and two relevant Treasury auctions. The most important news will be posted late in the week, so we may see the most movement in rates during those days.
The first report comes Wednesday afternoon when the Federal Reserve will release its Beige Book. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve to determine monetary policy during their FOMC meetings. If it show s surprisingly softer economic activity, the bond market may thrive and mortgage rates could drop shortly after the 2:00 PM ET release. If it reveals signs of inflation growing, we could see mortgage rates revise higher Wednesday afternoon.
Overall, it likely is going to be a fairly busy week for the financial markets, but the most action will probably come in the latter days. I think that Friday will be the single most important day of the week with Retail Sales figures being posted, but as we have seen over the past couple of weeks, we don't need significant news from economic reports for the markets to move heavily and mortgage rates to change significantly. Accordingly, this would be a very good week to maintain fairly constant contact with your mortgage professional.
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.