Our Real Estate Blog

Mortgage Rates (7/9/2010)

July 9th, 2010 11:22 AM by Lehel S.

Friday's bond market has opened in negative ground with no data or significant stock changes to drive trading. The stock markets are flat with the Dow nearly unchanged and the Nasdaq up 4 points. The bond market is currently down 4/32, but due to strength late yesterday we should see an improvement of approximately .125 - .250 of a discount point in mortgage rates if comparing to yesterday's morning pricing.

If this morning's stock and bond trading is any indication of what we will see the rest of the day, it appears the week will come to a quiet end. There was no important data posted this week, which allowed the stock markets to take center stage. As long as the major stock indexes remain near current levels, mortgage rates should follow suit this afternoon.

As referenced yesterday, the bond market did close above 3.00%. We saw some afternoon strength that came close to pushing below that threshold, but fell short. This morning's bond losses are minor, but what is relevant is the fact we are moving farther above the 3.00% level (currently 3.04%). We should be attentive to this because I firmly believe that if the benchmark 10-year Treasury Note does not fall below 3.00% soon, we could be in for an upward move in mortgage rates.

Next week will be much more active than this week was. There are several important reports scheduled to be posted next week, including two key inflation readings and a very important measurement of consumer spending along with the minutes from the last FOMC meeting and two relevant Treasury auctions. Nothing of relevance is scheduled for Monday, so expect a repeat of this week's activity with the stock markets heavily influencing bond trading and mortgage pricing. Look for details on 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 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. 
Posted in:General
Posted by Lehel S. on July 9th, 2010 11:22 AM



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