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Friday’s bond market has opened in negative territory following early gains
in stocks. The major stock indexes appear likely to close the week out on a
positive note with the Dow up 77 points and the Nasdaq up 15 points. The
bond market is currently down 7/32, which will likely push this morning’s
mortgage rates higher by approximately.125 of a discount point.
With nothing of relevance scheduled for release today, we can expect stocks
to be the heaviest influence on today’s bond trading and mortgage pricing.
If the major indexes extend their current gains, another increase in
mortgage rates could follow later today. However, if they give back a good
portion of this morning’s improvement, we may see lower mortgage rates this
afternoon.
Next week is pretty active in terms of economic reports and other events
that are relevant to mortgage rates. Besides the fact that are six economic
reports due to be posted, we also have a couple of Treasury auctions that
may influence bonds trading enough to affect mortgage rates and a bunch of
speaking engagements by Fed members, including one with Chairman Bernanke.
In addition, it will be a holiday-shortened week with an early close in the
bond market Thursday and full closure Friday due to the Good Friday holiday.
None of the week’s economic releases are scheduled for Monday, so weekend
news and any changes in the Cyprus financial crisis will likely drive bond
trading and mortgage rate changes most of the day. Fed Chairman Bernanke is
one of several international speakers scheduled at the London School of
Economics. He is set to speak about the past financial crisis and what was
learned from it at 1:15 PM ET. This isn’t likely to be a market moving
speech and may not even address future monetary policy changes, but
whenever he speaks the markets listen so we will be watching it. Look for
details on next week’s schedule 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... Float 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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