Our Real Estate Blog

Mortgage Rates (7/6/2010)

July 6th, 2010 10:12 AM by Lehel S.

Tuesday's bond market has opened up slightly despite sizable stock gains. The stock markets are kicking the week off with a post-holiday rally that has the Dow up 128 points and the Nasdaq up 34 points. The bond market is currently up 3/32, which should keep this morning's mortgage rates at Friday's levels.

The Institute for Supply Management (ISM) reported late this morning that their service sector index fell to 53.8 last month, down from 55.4 in May. Analysts were expecting to see a reading of 55.0, meaning that more surveyed businesses in the service sector felt business worsened during the month than last month. This is basically good news for the bond market and mortgage rates, but it was not enough of a variance from forecasts to have an impact on this morning's mortgage pricing.

The rest of the week is extremely light in terms of relevant economic reports or events that may affect mortgage rates. The only other economic data worth menti oning is Thursday's weekly unemployment figures from the Labor Department. This release usually has little influence on bond trading or mortgage rates, but with a lack of important data scheduled for release this week it may draw more attention than usual. Analysts are expecting to see that approximately 460,000 new claims for benefits were filed last week. The higher the total of new claims, the better the news for bonds and mortgage rates.

Overall, I am expecting to see a fairly quiet week in mortgage rates, especially if comparing to recent weeks. It is very difficult to label any particular day as the most important of the week with so little to influence trading. I suspect that the stock markets will be the biggest influence on trading and mortgage pricing, but if today's reaction is any indication of what to expect the next couple days, it will certainly be a quiet week for mortgage rates.

If I were considering financing/refinancing a home, I w ould.... 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 6th, 2010 10:12 AM

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