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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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