Thursday, May 9, 2013

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.
 
 
 
 
 




Thursday’s bond market has opened down slightly following stronger than expected economic news. The stock markets are fairly calm with the Dow up 5 points and the Nasdaq practically unchanged from yesterday’s close. The bond market is currently down only 1/32, but with some softness late yesterday it should be enough to push this morning’s mortgage rates higher by approximately .125 of a discount point.

The Labor Department reported early this morning that 323,000 new claims for unemployment benefits were filed last week. This was a decline from the previous week’s revised total of 327,000 and well below forecasts of 336,000 initial claims. That indicates strength in the employment sector last week, making the data negative for the bond market and mortgage rates.

We also have today’s 30-year Bond auction to watch for this afternoon. Yesterday’s 10-year Note sale was relatively uneventful. The indicators that we use to gauge investor demand showed an average level of interest at best. That wasn’t exactly a surprise, but it also doesn’t give us much to be optimistic about in today’s auction. If there was a high level of interest in today’s sale, we could see bond prices rise during afternoon trading with a slight possibility of an improvement in mortgage pricing to follow. However, a lackluster sale could erase some or all of this morning’s improvements in bond prices and mortgage rates. Results of the auction will be posted at 1:00 PM ET, so any reaction will come during early afternoon hours.

Tomorrow has no relevant economic data set for release, although we do have a speaking engagement by Fed Chairman Bernanke at 9:30 AM ET. He will be speaking at Fed banking conference in Chicago and as usual, the markets will be watching closely. This isn’t a major event that would normally draw a significant amount of attention, but it is his first speech since last Friday’s Employment report. Traders will be watching for him to reference the data and his thoughts about it. Accordingly, any surprises will influence the markets and mortgage rates, especially since there was so little on this week’s calendar.



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... Lock 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

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