Monday, June 10, 2013

Market commentary- rates open up off a little


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Monday’s bond market has opened the week where it left off Friday, in negative ground. The stock markets have started the week flat with the Dow up 5 points and the Nasdaq up 1 point. The bond market is currently down 9/32, which will likely add another .125 of a discount point to this morning’s mortgage pricing. If your lender did not revise upward late Friday, you will probably see an increase of approximately .250 - .375 of a discount point over Friday’s morning pricing.

There is nothing of relevance scheduled for release today or tomorrow, so look for the stock markets to be the best candidate as the cause of an intra-day revision to mortgage rates or changes tomorrow morning. The rest of the week has four pieces of economic data that are relevant to mortgage rates in addition to two Treasury auctions that can also be influential, but the first event doesn’t take place until Wednesday afternoon.

The first of the week’s two relevant Treasury auctions will be held Wednesday when 10-year Treasury Notes will be sold. Thursday gas one of the economic reports while Friday has three. Thursday’s Retail sales report and Friday’s Producer Price index (PPI) are the key pieces of economic data that will probably cause the most movement in bonds and mortgage rates.

Overall, look for Thursday or Friday to be the biggest day of the week with both having important economic data scheduled. The least important day of the week will probably be tomorrow. We saw plenty of movement in the markets and mortgage pricing again last week and it is quite likely that this week will also be active. However, I suspect that it will be to a less degree than last week was. The stock markets will also influence bond trading and mortgage rates, so watch the major indexes in addition to the economic reports. It is highly recommended that you maintain contact with your mortgage professional this week if still floating an interest rate.



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

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