June 10th, 2009 9:10 AM by Lehel Szucs
Tuesday's bond market has opened in positive territory, recovering some of yesterday's late losses. The stock markets are mixed with the Dow down 30 points and the Nasdaq up 8 points. The bond market is currently up 8/32, but due to weakness late yesterday we will likely see an increase of approximately .250 of a discount point over yesterday's morning rates.
There is no relevant economic news scheduled for release today. Tomorrow brings us the first of this week's relevant data. April's Goods and Services Trade Balance will be posted early tomorrow morning. This report gives us the size of the U.S. trade deficit and will be released at 8:30 AM. It isn't likely to cause much movement in the markets or mortgage rates, but nevertheless forecasters are expecting to see a $29.0 billion deficit.
The Federal Reserve will release its Beige Book tomorrow afternoon. This data details economic conditions throughout the U.S. by region. It is relied upon h eavily by the Federal Reserve during FOMC meetings in determining monetary policy. If it shows 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 tomorrow afternoon.
Overall, it 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 Thursday will be the single most important day of the week, but as we saw last week, we don't need significant news from economic reports for the markets to move heavily and mortgage rates to change. Accordingly, this would be a very good week to maintain fairly constant contact with your mortgage professional?particularly after last week's selling.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closin g 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