daily market update

Greetings! Here's your Daily Commentary report compliments of
Alan Russell & Princeton Capital!
Call me today for current rates and market information at (650) 947-2296.

In observance of the Good Friday holiday, the stock and bond markets are closed today. WE are updating today’s report because there were economic reports posted this morning despite the holiday. Most mortgage lenders will be closed today also, or will at least not be issuing new rates until Monday morning. Any lenders that are open for business today may also prevent a new rate lock until the markets open Monday. Yesterday’s 7-year Treasury Note sale wasn’t overly strong with most of the benchmarks used to gauge investor demand showing average or below average results. The broader bond market did weaken slightly after the news was posted, but it was not enough of a move to cause an upward revision to mortgage rates. In other words, the auction was a non-factor in yesterday’s mortgage pricing. There were two economic reports posted this morning. The first was February's Personal Income & Outlays at 8:30 AM ET. The Commerce Department announced that personal income rose 1.1% while spending rose 0.7% last month. Both readings exceeded forecasts, indicating that consumers had more money to spend and actually spent more than many had thought. That makes the data negative for the bond market and mortgage rates since it points towards stronger levels of economic activity. Also posted this morning was March’s Consumer Sentiment Index from the University of Michigan just before 10:00 AM ET. It revealed reading of 78.6 that also was higher than forecasts. Analysts were expecting to see a reading around 72.4, meaning that surveyed consumers were much more optimistic about their own financial situations than many had expected. Since that means they are more apt to make a large purchase in the near future, we should consider the data negative news for the bond and mortgage markets. Next week brings us the release of several economic reports and other relevant events that may influence mortgage rates. By number of events, there are fewer set for next week than there were the past several weeks. However, some of next week’s data is more important to the markets than any of the economic releases we have seen over the past several weeks. It starts with the highly important ISM manufacturing index late Monday morning and closes with the almighty Employment report Friday. Look for details on next week’s activities 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 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...       Alan Russell 161 South San Antonio Rd. | Los Altos, CA 95022 Ph: 650-947-2296 | Fax: 408-335-1118 alanrussell@princetoncap.com CLICK HERE TO STOP RECEIVING OUR REPORT