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Friday’s bond market has opened in negative territory with today’s only
relevant economic data showing stronger than expected results. The stock
markets are mixed with the Dow down 35 points and the Nasdaq up 5 points.
The bond market is currently down 7/32, but we may still see a small
improvement in rates this morning due to strength in trading late
yesterday.
Yesterday’s 7-year Treasury Note auction was received fairly well with
several benchmarks we use to gauge investor demand showing a decent level
of interest. This contributed to yesterday’s afternoon strength in bonds,
leading to many lenders making intra-day improvements to their rate sheets.
If your lender improved late yesterday, you may see a slight increase in
this morning’s pricing.
Today’s only relevant economic news was the University of Michigan’s
revision to their Index of Consumer Sentiment for May. They announced just
before 10:00 AM ET this morning that the index was revised to 84.1.
Analysts were expecting to see no change from the initial reading of 82.7,
meaning that surveyed consumers were more optimistic about their own
financial situations than many analysts had thought. That makes the data
negative for the bond market and mortgage rates because rising confidence
usually translates into higher levels of consumer spending.
Next week will be shortened due to the Independence Day holiday but still
has some key economic data scheduled. It starts with the release of this
month’s ISM manufacturing index late Monday morning and ends with Friday’s
monthly Employment report. There is relevant economic data in between also,
along with the holiday Thursday. Look for details on next week’s events 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...
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