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Friday’s bond market has opened flat again with no relevant economic data
or other events scheduled to drive trading today. The stock markets are
currently mixed with the Dow down 51 points and the Nasdaq up 7 points. The
bond market is currently is down 6/32, which will likely push this
morning’s mortgage rates higher by approximately .125 of a discount point.
With nothing of importance scheduled for release today that could affect
mortgage rates, we can expect any intra-day revision to pricing to come as
a result of movement in stocks. If the major stock indexes move much higher
than current levels, we may see pressure in bonds build that would lead to
a small upward revision to mortgage rates. If they move lower during the
day, an improvement to rates will likely follow. If stocks remain near
current levels, mortgage pricing should follow suit.
Next week isn’t particularly busy in terms of the number of events
scheduled that may influence mortgage rates. However, of the handful of
reports that are on the calendar, a couple of them can have a noticeable
impact on the broader financial and mortgage markets. One of the reports is
considered to be the benchmark reading for economic growth, meaning it can
easily be a market mover.
There is a relevant data scheduled for Monday morning. This is March’s
Existing Home Sales report from the National Association of Realtors late
Monday morning. It gives us a measurement of housing sector strength and
mortgage credit demand, but is considered moderately important to the
markets. Look for details and forecasts on this report and the rest of the
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...
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