|
Friday’s bond market has opened in negative territory with nothing left to
drive trading other than a generally negative tone. The stock markets are
mixed with the Dow down 13 points and the Nasdaq up 11 points. The bond
market is currently down 6/32, which will likely push this morning’s
mortgage rates higher by approximately .125 - .250 of a discount point.
We saw some weakness in the bond market late yesterday after the results of
the 30-year Bond auction were posted. The auction didn’t go overly well or
weak with most of the indicators we use to gauge investor demand showing an
average or slightly below average level of interest. This wasn’t the sole
reason we saw the broader bond market weaken yesterday afternoon, but it
did prevent bonds from moving higher.
There is no relevant economic data being released today, but we did have a
speech from Fed Chairman Bernanke mid-morning. He is speaking at a Fed
banking conference in Chicago and hasn’t said anything notable as of yet.
Most of the content has been about regarding banking and equity-related
markets. There has not been much said about our economy of the global
financial issues, so we have not seen the bond or mortgage markets react to
his words. At least not yet.
Next week is pretty busy in terms of economic reports scheduled that can
influence mortgage rates. There is relevant data coming four of the five
days, including a key measurement of consumer spending early Monday
morning. This is in contrast to this week where we had no monthly or
quarterly economic reports to drive bond trading and mortgage rates yet we
still saw movement. It is going to be an interesting week, so look for
details 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... Lock if my closing was taking place between
21 and 60 days... Float if my closing was taking place over 60 days from
now...
|
No comments:
Post a Comment