Our Real Estate Blog

Mortgage Rates (7/17/2009)

July 18th, 2009 4:38 PM by Lehel Szucs

Friday's bond market has opened in negative territory after today's only economic data showed much stronger than expected results. The stock markets are relatively flat with the Dow up a few points and the Nasdaq down a few points. The bond market is currently down 16/32, which should push this morning's mortgage rates higher by approximately .250 of a discount point.

June's Housing Starts was the only relevant data posted this morning. It showed that construction starts of new homes rose 3.6% over May's significantly upward revised total. Analysts were expecting to see little change from May to June, but today's report revealed that demand for new homes was much stronger in May and June than thought. This indicates that the housing market may be stabilizing, which is considered negative news for the bond market and mortgage rates.

I am expecting to see a fairly calm afternoon as the weekend approaches. Unless the stock markets make a sizable move higher or lower, I believe bonds and mortgage pricing will remain near current levels the rest of the day.

Next week is fairly light in terms of economic reports for the markets to digest. There are only a couple of reports scheduled, but none are considered to be of high importance. Unlike most, there is relevant news scheduled for release this Monday. The Conference Board will post June's Leading Economic Indicators (LEI) Monday, which is expected to show a moderate increase. This means it is predicting economic growth over the next three to six months. But look for more details on this report and 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... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... T his 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

Posted in:General
Posted by Lehel Szucs on July 18th, 2009 4:38 PM

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