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.           Friday’s bond market has opened flat as have the stock markets. There was important economic data released this morning, but it appears the markets are shrugging it off. The Dow is currently unchanged from yesterday’s close while the Nasdaq is up 4 points. The bond market is nearly unchanged, which should keep this morning’s mortgage rates very close to yesterday’s morning pricing. Yesterday’s 30-year Treasury Bond auction had similar results to Wednesday’s 10-year Note sale. At best we can consider investor demand at average but some indicators pointed towards weaker levels. Fortunately, the impact on afternoon bond trading yesterday was relatively minimal. We saw some selling that caused yields to rise immediately after but then they improved before returning to where they were right before the results were posted. The net effect on Thursday afternoon’s mortgage rates was minor. November's Producer Price Index (PPI) was today’s only relevant economic data. At 8:30 AM, the Labor Department announced a 0.1% decline in the overall reading and a 0.1% rise in the core data. The core data is the more important one because it excludes more volatile food and energy prices, but both readings pegged forecasts. This data tracks inflationary pressures at the producer level of the economy and today’s report shows that prices remain subdued. That is technically good news for the bond market and mortgage rates because rising inflation makes long-term securities such as mortgage-related bonds less attractive to investors. However, since the report showed no surprises, it is having very little impact on this morning’s mortgage pricing. Next week is a contrast to this week in terms of events scheduled that may influence mortgage rates. There is relevant economic data set for each day of the week and varies from minor to extremely important. There also is the last FOMC meeting of the year, which will be followed by updated Fed economic predictions and a press conference hosted by Fed Chairman Bernanke. Monday’s data is moderately important with 3rd quarter worker productivity data and November’s Industrial Production both due to be released. Look for details on next week’s calendar 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... 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