Our Real Estate Blog

Mortgage Rates (7/23/2008)

July 24th, 2008 12:42 PM by Lehel Szucs

Wednesday's bond market has opened in negative territory since there is no relevant economic data to offset early stock gains. The stock markets are in positive territory with the Dow up 24 points and the Nasdaq up 18 points. The bond market is currently down 13/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.

There is no relevant economic data scheduled for release this morning, however, the Federal Reserve will release its Beige Book report this afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. With Fed Chairman Ben Bernanke's testimony last week, I don't think we will see any significant surprises in this report, and therefore will likely not cause much movement in mortgage rates later today.
There are two housing sector related releases scheduled for this week with the first coming tomorrow morning. Neither will likely have much of an impact on the bond market or mortgage rates. June's Existing Home Sales will be posted tomorrow morning and is expected to show a decline in sales.

We also have a 5-year Treasury Note auction Thursday that may influence bond trading but will also give us an indication of investor appetite for bonds. If it is met with a strong demand from investors, bond prices may rise during afternoon trading. However, if the sale was met with a poor demand, we could see bond prices fall and mortgage rates rise late tomorrow.

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 no w... 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 2008

Posted in:General
Posted by Lehel Szucs on July 24th, 2008 12:42 PM



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