Our Real Estate Blog

Mortgage Rates (7/20/2010)

July 20th, 2010 11:14 AM by Lehel S.

Tuesday's bond market has opened in positive territory after this morning's only economic data showed weaker than expected results. The stock markets are helping boost bond prices with the Dow down 76 points and the Nasdaq down 15 points. The bond market is currently up 7/32, which should improve this morning's mortgage rates by approximately .125 of a discount point.

June's Housing Starts was today's only relevant data and it does not carry much significance in the markets. It revealed that starts of new housing fell 5% last month to its lowest level since last October. This further supports the theory that the housing market is not stable yet, which can be considered good news for the mortgage market because a weak housing sector makes a broader economic recovery less likely.

There is no relevant economic data to be posted tomorrow, but it is the first of two days of congressional testimony on the status of the economy and monetary policy by Fe d Chairman Bernanke. He will appear at 10:00 AM ET and usually starts with a prepared statement before answer questions directly from the committee members. He will testify before the Senate Banking Committee tomorrow and the House Financial Services Committee Thursday morning. 

This event will be televised and watched very closely by market participants and analysts. We usually see the most movement in rates during the first day of this semi-annual testimony since his prepared words for both appearances are usually quite similar to each other, meaning that the second day of testimony rarely gives us anything we did not hear during the first day.

Thursday brings us a couple of economic reports, but none of them are considered to be highly important to the markets. The data itself could lead to minor changes in mortgage rates, but if Wednesday's events lead to a sizable rally or sell-off in the bond market, that activity may carry into Thursday's tra ding also. In other words, we may have a fairly quiet day or possibly a very active day Thursday, depending on how tomorrow goes.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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. 
Posted in:General
Posted by Lehel S. on July 20th, 2010 11:14 AM

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