Daily market commentary

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 in positive territory again after today’s only economic data failed to cause alarm. The stocks markets have opened flat, helping to keep bonds in positive ground during early trading. The Dow is currently down 7 points while the Nasdaq is up 2 points. The bond market is currently up 6/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point. Part of this morning’s improvement in mortgage pricing is a result of strength in bonds late yesterday. The 10-year Treasury Note auction went pretty well, leading to afternoon improvements in bond prices. Some lenders may have revised rates slightly lower late yesterday, so if yours did issue an intra-day revision, you likely will see a smaller improvement in this morning’s rates than those who opted to wait until today to reflect those gains. The Labor Department announced early this morning that 333,000 new claims for unemployment benefits were filed last week, up from the previous week’s revised total of 328,000. The rise in initial claims is considered good news for the bond market since it hints at a softening employment sector. However, this is only a single week’s worth of new claims and analysts were actually expecting to see 340,000, meaning the number showed slightly stronger than forecasted results. The net impact on this morning’s bond trading and mortgage rates has been minimal though. We have the 30-year Bond auction to watch for later today. Since yesterday’s 10-year Note sale went well, we remain optimistic about today’s auction as it is also for long-term securities. If investor demand was high, we could see bonds move higher later today. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading. Tomorrow has nothing of relevance scheduled. There is no reason to believe we will see anything drastic happen in the financial and mortgage markets as traders head into the weekend. It should be another calm day for mortgage rates. Next week has plenty of economic data scheduled that is relevant to the bond and mortgage markets, so we can expect to see plenty of movement in rates then. 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... Lock 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 CLICK HERE TO STOP RECEIVING OUR REPORT