Daily Mortgage Rate Lock Advisory

Daily Mortgage Rate Lock Advisory Tuesday 8/18/09

Tuesday’s bond market has opened down slightly despite the release of weaker than expected economic news. The stock markets have recovered some of yesterday’s losses with the Dow up 54 points and the Nasdaq up 15 points. The bond market is currently down 3/32, which should keep this morning’s mortgage rates at yesterday’s morning levels.

The Labor Department gave us July’s Producer Price Index (PPI) this morning, saying that the overall index fell 0.9% and that the core data reading fell 0.1%. Analysts had predicted a 0.2% decline in the overall reading and a 0.1% rise in the core data. This means that prices at the producer level of the economy were much weaker than expected. That indicates that inflationary pressures at that level are not a concern at the moment, making long-term securities such as mortgage related bonds more attractive to investors. Unfortunately, traders seem to be more concerned with the stock markets than today’s economic news.

The second report of the day was also favorable for bonds, but it is much less important than the PPI reading. The Commerce Department said that starts of new homes fell last month, hinting that the housing sector may not be as ready to recover as some analysts had thought. Many market participants were expecting to see an increase in stats of new homes. A weak housing sector if favorable to bonds because it makes a broader economic recovery less likely in the immediate future.

There is no relevant economic data scheduled for release tomorrow, so look for the stock markets to again influence bond trading and mortgage pricing. If the stock markets can hold this morning’s gains and move higher tomorrow morning, there is a pretty good possibility of seeing mortgage rates inch higher tomorrow. But if we see stock weakness, bonds may benefit, pushing mortgage rates lower.

Thursday’s primary data is July’s Leading Economic Indicators (LEI) from the Conference Board. This index attempts to measure economic activity over the next three to six months and is considered to be moderately important. A higher than expected reading is bad news for the bond market because it indicates that the economy may be strengthening more than thought. However, a weaker than expected reading means that the economy may not grow as much as predicted, making stocks less appealing to investors. This also eases inflation concerns in the bond market and could lead to slightly lower mortgage rates Thursday if the stock markets remain calm. Current forecasts are calling for an increase of 0.6% in the index, indicating economic growth over the next couple of months.

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…
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Tags: bond, bond market, bond trading, closing, core data, inflationary pressures, leading economic indicators, LEI, market participants, producer level, producer price index, producer price index ppi, stock, stock markets

Daily Mortgage Rate Lock Advisory Monday 08/17/09

Monday’s bond market has opened in positive territory following early stock selling. The stock markets are following several international markets that posted losses during overnight trading. The Dow is currently down 188 points while the Nasdaq has fallen 51 points. This has helped push the bond market up 22/32 as investors seek safe-haven from falling stock prices. However, the impact on this morning’s mortgage rates has been fairly minimal. We will likely see little change from Friday’s morning rates due to volatility in trading late Friday.

There is no relevant economic data scheduled for release this morning. The rest of the week brings us the release of four reports that may influence mortgage rates, but only one of them is considered to be highly important. With no relevant auctions or speeches on tap, I suspect we will see much less movement in mortgage rates this week compared to the past couple of weeks.

There are two reports scheduled to be posted tomorrow morning. The first is July’s Producer Price Index (PPI) that gives us an indication of inflation at the producer level of the economy. There are two readings in the report- the overall index and the core data reading. The core data is more important because it excludes more volatile food and energy prices that can change significantly from month to month. Current forecasts call for a decline of 0.2% in the overall and a 0.1% increase in the core data reading. A larger increase in the core data could push mortgage rates higher tomorrow morning. If it reveals weaker than expected readings, we may see mortgage rates improve as a result.

The second report of the day is July’s Housing Starts data. This report gives us an indication of housing sector strength and mortgage credit demand. However, it isn’t considered to be of high importance to the bond market or mortgage pricing and usually doesn’t cause much movement in mortgage rates unless it varies greatly from forecasts. It is the least important of the week’s reports and is expected to show an increase in construction starts of new homes. The lower the number of starts the better the news for bonds as it would indicate a weaker than expected housing sector.

Overall, look for tomorrow to be the busiest day of the week due to the PPI being released. The rest of the week will likely be influenced more by stock prices than anything else, which may be quite volatile. Therefore, keep an eye on the markets and maintain contact with your mortgage professional if you have not locked an interest rate yet.

If I were considering financing or 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…
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all or any other borrowers.

Tags: bond, bond market, closing, core data, mortgage credit, mortgage rates, producer level, producer price index, producer price index ppi, stock, stock markets, stock prices, volatile food, week

Weekly Mortgage Rate Lock Advisory Sunday 08/16/09

This week brings us the release of four reports that may influence mortgage rates, but only one of them is considered to be highly important. With no relevant auctions or speeches on tap, I suspect we will see much less movement in mortgage rates this week compared to the past couple of weeks. There is no relevant data scheduled for release tomorrow, so look for the stock markets to drive bond trading and mortgage rates.

There are two reports scheduled to be posted Tuesday morning. The first is July’s Producer Price Index (PPI) that gives us an indication of inflation at the producer level of the economy. There are two readings in the report- the overall index and the core data reading. The core data is more important because it excludes more volatile food and energy prices that can change significantly from month to month. Current forecasts call for a decline of 0.2% in the overall and a 0.1% increase in the core data reading. A larger increase in the core data could push mortgage rates higher Tuesday morning. If it reveals weaker than expected readings, we may see mortgage rates improve as a result.

The second report of the day is July’s Housing Starts data. This report gives us an indication of housing sector strength and mortgage credit demand. However, it isn’t considered to be of high importance to the bond market or mortgage pricing and usually doesn’t cause much movement in mortgage rates unless it varies greatly from forecasts. It is the least important of the week’s reports and is e= xpected to show an increase in construction starts of new homes. The lower the number of starts the better the news for bonds as it would indicate a weaker than expected housing sector.

The Conference Board will give us the its Leading Economic Indicators (LEI) for July late Thursday morning. This index attempts to measure economic activity over the next three to six months and is considered to be moderately important. A higher than expected reading is bad news for the bond market because it indicates that the economy may be strengthening more than thought. However, a weaker than expected reading means that the economy may not grow as much as predicted, making stocks less appealing to investors. This also eases inflation concerns in the bond market and could lead to slightly lower mortgage rates Thursday if the stock markets remain calm. Current forecasts are calling for an increase of 0.6% in the index, indicating economic growth over the next couple of months.

July’s Existing Home Sales will close out the week’s data Friday morning. The National Association of Rea= ltors will release this report, giving us a measurement of housing sector strength. It covers approximately 85% of home sales in the U.S., but usually does not have a major influence on bond trading and mortgage rates unless it varies greatly from analysts’ forecasts. It is expected t= o show an increase from June’s sales, meaning the housing sector is strengthening.

Overall, look for Tuesday to be the busiest day of the week with the PPI being released. The rest of the week will likely be influenced more by stock prices than anything else, which may be quite volatile. Therefore, keep an eye on the markets and maintain contact with your mortgage professional if you have not locked an interest rate yet.
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…

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Tags: bond, bond market, bond trading, core data, leading economic indicators, LEI, mortgage credit, mortgage rates, producer level, producer price index, producer price index ppi, report, U.S., volatile food, week

Daily Mortgage Rate Lock Advisory for Friday 08/14/09

Friday’s bond market has opened in positive territory again after this morning’s economic data failed to give us any major surprises. Contributing to today’s early bond strength is a weak opening for stocks that has the Dow down 131 points and the Nasdaq down 32 points. The bond market is currently up 13/32, which with yesterday’s late strength should improve this morning’s mortgage rates by approximately .500 of a discount point compared to yesterday’s morning rates.

The Labor Department gave us today’s most important data with the release of July’s Consumer Price Index (CPI). They reported that the overall index was unchanged form June’s level and that the core data reading rose 0.1%. Both of these readings matched forecasts, indicating that consumer prices remain in-check last month. But the index has fallen 2.1% over the past 12 months, matching the largest year-over-year decline since 1950. That is good news for bonds because it means that inflation is not currently a threat to the economy. Inflation erodes the value of a bond’s future fixed interest payments, leading to higher mortgage rates. When inflation concerns are low, bonds are usually more appealing to investors. As bonds are bought, their prices rise, pushing their yields and mortgage rates lower.

The second report of the day was Industrial Production data for July. It showed a 0.5% increase in output and U.S. factories, mines and utilities. Analysts were expecting to see a 0.4% rise, meaning manufacturing activity was slightly stronger than expected.
This can be considered negative for bonds, but the minimal size of the variance and the fact that this data is not extremely important to the markets has prevented it from affecting this morning’s mortgage pricing. The final report of the week was the University of Michigan’s Index of Consumer Sentiment for August late this morning. It gave us a reading of 63.2 that was well below forecasts of a 69.0 that was expected. That indicates that consumers were less optimistic about their own financial situations than many had thought. This is good news for bonds because falling confidence usually translates into weaker levels of consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely.

Yesterday’s 30-year Bond auction went fairly well, leading to higher bonds prices during afternoon trading Thursday. This caused some lenders to revise their rates slightly lower late yesterday, while others may have waited until this morning to reflect those changes.

Next week is relative light in terms of economic releases, at least if comparing to the last two weeks. There is no relevant data scheduled to be posted Monday, but we will get another important inflation reading later in the week. Look for more 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…
Float if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now…

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Tags: bond, bond market, bond strength, closing, consumer price index, core data, economy inflation, index cpi, index of consumer sentiment, inflation concerns, minimal size, mortgage rates, U.S., week, yesterday

Daily Mortgage Rate Lock Advisory – Wednesday Mar. 18th

Rate Lock Advisory – Wednesday Mar. 18th

Wednesday’s bond market has opened in positive territory following early stock losses and despite stronger than expected inflation news. The stock markets are posting sizable losses with the Dow down 128 points and the Nasdaq down 11 points. The bond market is currently up 16/32, but we will likely see little change in this morning’s mortgage rates as the markets await the Fed’s words later this afternoon.

The Labor Department gave us today’s important data with the release of February’s Consumer Price Index (CPI). It showed a 0.4% rise in the overall reading and a 0.2% increase in the core data reading. Both readings were slightly stronger than expected, indicating prices at the consumer level of the economy were higher than thought. While that is bad news for bonds and mortgage rates because inflation erodes the value of a bond’s future fixed interest payments, the market seems to have downplayed the data in this morning’s trading.

This week’ s FOMC meeting will adjourn at 2:00 PM ET today. There is not likely to be any change in short-term interest rates, but the markets will be looking for any indication if the Fed will be buying bonds as part of its effort to keep the markets liquid. If the Fed does start buying the debt, it should ease investor concerns about the amount of the debt that has been sold to fund the economic recovery and bailout programs. This would also likely prevent China, who made concerning comments last week, from selling some of their massive holdings in U.S. securities. The Fed move would also likely help keep mortgage rates low, possibly even driving them lower than current levels.

If the post-meeting statement indicates that the Fed is ready to start buying bonds, we could see an afternoon rally that may revise mortgage pricing lower this afternoon. However, any hint that the move may be delayed or is not going to happen would likely lead to selling in bonds and higher m ortgage rates later today.

Look for an update to this report shortly after the markets have an opportunity to react to the statement.

If I were considering financing/refinancing a home, I would…. Float if my closing was taking place within 7 days… Float 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… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009

Tags: afternoon rally, bond, closing, consumer price index, core data, Fed, fed move, Float, fomc meeting, index cpi, investor concerns, mortgage rates, stock losses, today, U.S.

Daily Mortgage Rate Lock Advisory – Monday Mar. 16th

Rate Lock Advisory – Monday Mar. 16th

Monday’s bond market has opened flat with the stock markets mixed during early trading. The Dow is currently up 48 points while the Nasdaq has lost 9 points. The bond market is currently nearly unchanged from Friday’s close, but we will still likely see an increase in this morning’s mortgage rates of approximately .250 of a discount point due to weakness Friday.

Today’s only relevant economic news was February’s Industrial Production report. It showed a drop in output at U.S. factories, mines and utilities of 1.4% last month. This was a little weaker than expected but indicates that manufacturing activity was slightly softer than thought. That is good news for bonds and mortgage rates, but not enough to spur a bond rally.

The Labor Department will post February’s Producer Price Index (PPI) early tomorrow morning. This index measures inflationary pressures at the producer level of the economy. There are two portions of the index- the overall rea ding and the core data. The core data is more important and watched more closely because it excludes more volatile food and energy prices. If the index shows a large increase, inflation concerns may rise, making long-term investments such as mortgage-related bonds less attractive to investors. This would lead to higher mortgage rates tomorrow morning. Current forecasts are calling for a 0.4% rise in the overall reading and a 0.1% increase in the core data.

Also tomorrow is the release of February’s Housing Starts, but it will likely not have much of an impact on mortgage rates. It gives us a measurement of housing sector strength and future mortgage credit demand, but is usually considered to be of low importance to the financial markets. It is expected to show a decline in new starts from January to February.

Overall, look for Wednesday to be the most important day of the week due to the CPI release. Tomorrow may also be an active day for rates with t he PPI on tap. But the wildcard is whether stocks continue last week’s gains or if they move lower again. Stock strength would likely draw funds from bonds and lead to higher mortgage rates. However, if the major indexes fall again, funds may shift into bonds, leading to lower mortgage rates.

If I were considering financing/refinancing a home, I would…. Lock if my closing was taking place within 7 days… Float 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… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009

Tags: active day, bond, closing, core data, February, inflation concerns, mortgage credit, producer level, producer price index, producer price index ppi, release tomorrow, term investments, tomorrow, U.S., volatile food

Daily Mortgage Rate Lock Advisory – Sunday Mar. 15th

Rate Lock Advisory – Sunday Mar. 15th

This week brings us the release of five relevant economic reports along with an FOMC meeting for the markets to digest. The first piece of data will come mid-morning tomorrow when February’s Industrial Production report is posted. This report measures manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to show a 1.2% drop in output. A larger decline would be considered favorable news for bonds and mortgage rates.

The Labor Department will post February’s Producer Price Index (PPI) early Tuesday morning. This index measures inflationary pressures at the producer level of the economy. There are two portions of the index- the overall reading and the core data. The core data is more important and watched more closely because it excludes more volatile food and energy prices. If the index shows a large increase, inflation concerns may rise, making long-term investments such as mortgage-related bonds less attractiv e to investors. This would lead to higher mortgage rates Tuesday morning. Current forecasts are calling for a 0.4% rise in the overall reading and a 0.1% increase in the core data.

Also Tuesday is February’s Housing Starts, but it will likely not have much of an impact on mortgage rates. It gives us a measurement of housing sector strength and future mortgage credit demand, but is usually considered to be of low importance to the financial markets. It is expected to show a decline in new starts from January to February.

February’s Consumer Price Index (CPI) will be released Wednesday, which measures inflationary pressures at the very important consumer level of the economy. Its results can definitely have a huge impact on the financial markets, especially long-term securities such as mortgage-related bonds. It is expected to show a 0.3% increase in the overall index and a 0.1% rise in the more important core data. If we see weaker t han expected readings, bond prices should rise and mortgage rates would likely fall Wednesday.

The FOMC meeting that begins Tuesday and will adjourn Wednesday at 2:00 PM ET. With key short-term interest rates practically at 0% already, there is not much the Fed can do with monetary policy at this meeting. They have previously stated that they expect rates to remain near zero for some time. Therefore, the anxiety of the post-meeting statement should be minimal and the likelihood of a major market reaction to the statement is reduced significantly. If the statement references a time frame of an economic recovery, we may see the markets react if it reveals any surprises. Other than that, I am not expecting too much movement in mortgage rates Wednesday afternoon.

The Conference Board will post its Leading Economic Indicators (LEI) for February late Thursday morning. This index attempts to measure economic activity over the next three to six months. Cur rent forecasts are calling for a 0.6% decline, indicating that economic activity will likely slow in the coming weeks. This would be good news for the bond market and mortgage rates.

Overall, look for Wednesday to be the most important day of the week due to the CPI release. Tuesday may also be an active day for rates with the PPI on tap. But the wildcard is whether stocks continue last week’s gains or if they move lower again. Stock strength would likely draw funds from bonds and lead to higher mortgage rates. However, if the major indexes fall again, funds may shift into bonds, leading to lower mortgage rates.

If I were considering financing/refinancing a home, I would…. Lock if my closing was taking place within 7 days… Float 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… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2009

Tags: closing, consumer price index, core data, February, index cpi, inflation concerns, LEI, morning tomorrow, mortgage credit, producer level, producer price index, producer price index ppi, Tuesday, U.S., volatile food, Wednesday, week

Daily Mortgage Rate Lock Advisory – Friday Feb. 20th

Rate Lock Advisory – Friday Feb. 20th

Friday’s bond market has opened up sharply following early stock losses and renewed fears about the economy. The stock markets are showing early sizable losses after international markets posted large declines during overnight trading. The Dow is currently down 120 points while the Nasdaq has lost 13 points. The bond market is currently up 31/32, which will likely improve this morning’s mortgage rates by approximately .375 of a discount point.

The Labor Department gave us January’s Consumer Price Index (CPI) this morning, saying that the overall index rose 0.3% as expected. The core data rose 0.2%, exceeding analysts’ forecasts of a 0.1% increase. This means that consumer prices rose more than expected if excluding volatile food and energy prices. That is considered bad news for bonds, but the stock and economic concerns has prevented a negative reaction to this morning’s news.

The concerns, both here and overseas, about the global economy are contributing greatly to this morning’s bond gains. We are seeing a shift to safety as investors sell stocks and move funds into bonds. While this is good news for the bond market and mortgage rates, this is sometimes only a temporary move and could lead to further volatility in trading in the coming days and weeks. If investors become more comfortable with stocks, we could see those same funds move from bonds back into stocks, driving bonds prices lower and mortgage rates higher. Still, no reason to panic. This just means we need to watch the markets closely.

Next week is fairly active in terms of economic releases and relevant events. There is no important news scheduled for release Monday, but we do get important data and the semi-annual monetary policy testimony from the Fed Chairman to Congress on Tuesday. The rest of the week is scattered with relevant data releases, so look to Sunday’s weekly preview for details.

If I were considering finan cing/refinancing a home, I would…. Lock if my closing was taking place within 7 days… Float 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… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Tags: bond, closing, consumer price index, core data, economic releases, fed chairman, Float, index cpi, lock, move funds, relevant events, stock, stock losses, volatile food

Daily Mortgage Rate Lock Advisory – Friday Jan. 16th

Rate Lock Advisory – Friday Jan. 16th

Friday’s bond market has opened down sharply following the release of mixed economic news and concerns about future sales of related securities. The stock markets are mixed with the Dow up 13 points and the Nasdaq down 3 points. The bond market is currently down 45/32, which will likely push this morning’s mortgage rates higher by approximately .375 of a discount point.

There were three economic reports released this morning with the most important coming first. The Labor Department said that the overall reading in December’s Consumer Price Index (CPI) fell 0.7% when it was expected to fall 0.9%. However, the more important core data reading was unchanged from November’s level when it was forecasted to rise 0.1%. This means that food and energy costs did not fall as much at the consumer level of the economy as was expected. The good news is that other prices did not rise.

December’s Industrial Production report was next with a surprising drop in output of 2.0%. This was more than twice the decline that analysts were expecting. This, and a large downward revision to November’s output, indicates that output at U.S. factories, mines and utilities are spiraling lower. This is not good news for the economy, but is generally taken as favorable for bonds and mortgage rates.

The final report of the week was January’s preliminary reading to the University of Michigan’s Index of Consumer Sentiment that showed a higher level of sentiment than was expected. The reading of 61.9 was an increase from December’s final reading and stronger than the decline to 59.8 that was expected. This indicates that consumer willingness to spend may be rising, which is not considered to be good news for bonds.

Today’s data has not seemed to heavily influence bond trading and mortgage rates this morning. What seems to be driving bonds lower this morning is concern that more economic stimulus and government bailout f unds are going to require a significant increase in the amount of debt the government will need to sell in the near future. That additional supply weakens demand for current securities in the market. Unfortunately, this issue may come to light more often in the coming weeks. Hopefully the concern over corporate earnings and economic weakness will help fuel investor appetite for mortgage related bonds. If not, we may see mortgage rates begin an upward trend.

Next week brings us very little economic data for the markets to digest. There is nothing of interest or relevance Monday that needs to be noted today. It will be a very quite week in terms of economic releases, but as we have seen many times in the past this is not a guarantee that we will have a calm week in mortgage rates. Look for a summary of next week’s events and expectations 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… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Tags: bond, bond trading, closing, consumer price index, core data, downward revision, economic reports, economic stimulus, index cpi, index of consumer sentiment, lock, U.S., unds, week

Daily Mortgage Rate Lock Advisory – Tuesday Dec. 16th Afternoon Update

Rate Lock Advisory – Tuesday Dec. 16th

TUESDAY AFTERNOON UPDATE:

Today’s FOMC meeting has adjourned with an announcement of a .750 cut to key short-term interest rates. This brings the benchmark Fed Funds rate to a record low of .250%. The post meeting statement also indicated that rates will likely remain that low for some time. They noted that the economy could get weaker and that the threat of inflation had eased “appreciably.”

The reaction in the markets was favorable for stocks and bonds. The Dow closed up 360 points while the Nasdaq closed up 81 points. Despite those gains, the bond market did well also, currently up 47/32, which will likely improve this afternoon’s mortgage rates by approximately .375 of a discount point.

The Labor Department gave us this week’s most important economic news with the release of November’s Consumer Price Index (CPI). They reported that the overall index reading fell 1.7% last month. This was a larger drop than was expected and the lar gest monthly decline since February 1947, indicating that prices for energy are still falling rapidly. The core data reading, that excludes volatile food and energy prices, was unchanged last month. Analysts were expecting to see a slight increase in the core reading. This means that prices at the consumer level of the economy were lower than expected, which is good news for bonds and mortgage rates because falling prices means inflation is not really a threat.

November’s Housing Starts was also posted this morning and also showed a record low. It revealed a decline in starts of new homes of nearly 19% and a drop of 15% in permits for new construction starts. This means that the housing sector is still weakening and appears to be well off a “bottom” that people are trying to predict.

There is no relevant economic news scheduled for release tomorrow, so look for today’s events to carry into tomorrow’s trading. The next piece of relevant economic da ta will be November’s Leading Economic Indicators (LEI) late Thursday morning.

If I were considering financing/refinancing a home, I would…. Lock if my closing was taking place within 7 days… Float 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… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Tags: closing, consumer price index, core data, fed funds rate, Float, fomc meeting, housing starts, index cpi, LEI, lock, mortgage rates, rate, stocks and bonds, Tuesday, volatile food