Daily mortgage 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.           Wednesday’s bond market has opened in positive territory with stocks well in negative ground during early trading. The Dow is currently down 73 points while the Nasdaq has lost 27 points. The bond market is currently up 7/32, which should improve this morning’s mortgage rates by approximately .125 of a discount point. There is no relevant economic data being posted this morning, so expect to see a relatively calm morning for bond trading and mortgage rates. However, we could see some movement this afternoon when the first of this week’s two important Treasury auctions wrap up. The 10-year Note auction is taking place today while 30-year Bonds will be sold tomorrow. If the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lower after the results are posted and mortgage rates may move higher. On the other hand, a strong demand in the securities should lead to a broader bond market rally and lower mortgage rates during afternoon trading. Results of each sale will be announced at 1:00 PM, so any reaction will be come during early afternoon hours today and/or tomorrow. The only thing of interest tomorrow besides the 30-year Bond auction is the weekly unemployment update from the Labor Department. They are expected to announce that 340,000 new claims for unemployment benefits were filed last week, up from the previous week’s 326,000. This is usually not an important report because it tracks only a single week’s worth of initial claims. However, with little economic news scheduled this week, this one stands out a little more than usual. Increasing new claims for unemployment benefits is a sign of a weakening employment sector. Therefore, the larger the number of new claims we see tomorrow, the better the news it is for the bond market and mortgage pricing. There isn’t anything of importance scheduled for release Friday either, so look for stock gains or losses to influence bond trading and mortgage rates. There is no reason to believe that we will see a significant move upward or downward in rates as we head into the weekend. Next week has plenty of economic data scheduled that is relevant to the bond and mortgage markets, so the calmness of this week should be welcomed news for mortgage shoppers and industry professionals. 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