Our Real Estate Blog

Mortgage Rates (9/22/2010)

September 22nd, 2010 2:14 PM by Lehel S.

Wednesday's bond market has opened in positive territory as yesterday's rally has extended into this morning's trading. The stock markets are mixed with the Dow up 20 points and the Nasdaq down 7 points. The bond market is currently up 8/32, which should improve this morning's mortgage rates by approximately .250 of a discount point over yesterday's morning rates. 

A good part of today's improvement comes from yesterday's late rally, but if bonds move higher we may see further improvements later today. There is no relevant economic data scheduled for release today, so yesterday's FOMC news and today's stock markets are left to drive trading and mortgage rates.

The Labor Department will give us last week's unemployment figures early tomorrow. They are expected to say that 450,000 new claims for unemployment benefits were filed last week. We are hoping to see a higher number of claims. This would indicate further weakness in the labor market an d should help keep the bond market in positive territory.

There are two reports scheduled for release late morning tomorrow. The Conference Board will post its Leading Economic Indicators (LEI) for August, while the National Association of Realtors gives us home resale figures. The LEI index attempts to measure economic activity over the next three to six months. It is expected to show a 0.1% rise, meaning that it is predicting a slight increase in economic activity over the next several months. A larger than expected increase would be considered negative news for bonds and could lead to a minor increase in mortgage rates Thursday. 

August's Existing Home Sales report will also be released late tomorrow morning. The National Association of Realtors posts this data, giving us an indication of housing sector strength by tracking home resales in the U.S. It is expected to show an increase from July's sales, however, this data probably will be neutral towar ds mortgage pricing unless its results vary greatly from forecasts.

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 September 22nd, 2010 2:14 PM



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