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Tuesday’s bond market has opened in negative territory with stocks showing
sizable gains and no help coming from this morning’s economic news. The Dow
is currently up 84 points while the Nasdaq has gained 22 points. The bond
market is currently down 6/32, but due to strength in trading late
yesterday we likely will see little change in this morning’s mortgage rates
if comparing to Monday’s early pricing.
Today’s only relevant economic data was February's Factory Orders at 10:00
AM ET. The Commerce Department reported that new orders for durable and
non-durable goods rose 3.0% in February, exceeding forecasts of a 2.5%
increase. This is a sign that the manufacturing sector was stronger than
thought, making the data negative for the bond market. However, it wasn’t
enough of a variance in a relatively minor report to cause too much concern
in the bond or mortgage markets. Therefore, its impact on today’s rates has
been fairly minimal.
Tomorrow has a couple of private sector employment-related reports being
posted, but they are not considered highly important to the bond market or
mortgage rates. These reports are not always accurate in predicting results
of government reports, so they usually do not have much of an impact on
bond trading or mortgage pricing. We do see some reaction to them if they
reveal a surprisingly significant indication of employment strength or
weakness, particularly in the ADP monthly payroll change numbers. However,
I don't believe they deserve much concern or attention in regards to
mortgage pricing.
I am expecting to see a fairly calm couple of days in the markets until we
get to Friday’s Employment report. We will likely see some movement between
now and then as investors and traders prepare for its release, but I don’t
believe there will be too much volatility until we get March’s employment
numbers early Friday morning, unless something very much unexpected transpires.
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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