Daily Mortgage Rate Lock Advisory

Daily Mortgage Rate Lock Advisory – Tuesday Dec. 16th

Rate Lock Advisory – Tuesday Dec. 16th

Tuesday’s bond market has opened relatively flat despite weaker than expected economic news. The stock markets are showing sizable gains with the Dow up 115 points and the Nasdaq up 39 points. The bond market is currently up 3/32, but we will still see an increase in this morning’s mortgage pricing of approximately .250 of a discount point.

The Labor Department gave us today’s big 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 largest 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 rate s 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.

We also have today’s FOMC meeting to be concerned with. It will adjourn at 2:15 PM ET today and will likely affect afternoon trading and mortgage rates. The general consensus is that another rate cut is coming. Some think that the Fed will reduce key short-term interest rates by another .750 of a discount point, but most think the Fed will make a half-point move and wait until early next year before making another change. The post meeting statement also may a significant influence on the markets and mortgage rates as investors look for any indication of what and w hen the Fed may do next.

Look for an update to this report after the markets have had an opportunity to react to the meeting results.

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: closing, consumer price index, core data, Fed, fomc meeting, half point, housing starts, index cpi, lock, mortgage rate, point move, rate, significant influence, today, volatile food

Daily Mortgage Rate Lock Advisory – Monday Dec. 15th

Rate Lock Advisory – Monday Dec. 15th

Monday’s bond market has opened in positive territory following early stock losses and slightly weaker than expected economic data. The Dow and Nasdaq are kicking the week off in negative ground with losses of 70 points and 30 points respectively. The bond market is currently up 8/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.

This week is moderately busy in terms of the number of economic releases scheduled for release with four on the agenda, but the biggest news will likely be the last Federal Open Market Committee (FOMC) meeting of the year tomorrow. Only one of the four economic reports is considered to be of high importance, so the data may not be the biggest influence eon the markets and mortgage rates this week.

November’s Industrial Production data was posted mid-morning today, revealing a 0.6% decline in output at U.S. factories, mines and utilities. This was a slightly larger decline than the 0.5% that was expected, indicating that manufacturing activity was a little softer than thought. That is good news for bonds and mortgage rates.

Tomorrow morning brings us the release of November’s Consumer Price Index (CPI). It is similar to last week’s Producer Price Index, except it tracks inflationary pressures at the consumer level of the economy. It is also one of the most important monthly reports we see. Current forecasts call for a decline of 1.3% in the overall index and a 0.1% rise in the core data reading. The core data is watched more closely because it excludes more volatile food and energy prices, giving a more stabile reading for analysts to consider.

November’s Housing Starts report will also be released tomorrow morning, but I don’t see it causing much movement in mortgage rates. This report, which is expected to show a decline in starts of new homes, gives us an indication of housing sector strength and future mortgage cred it demand. But, it can be considered the least important of this week’s news.

The last FOMC meeting of the year is tomorrow and will adjourn at 2:15 PM ET. There is much debate about what the Fed will do at this meeting, but the general consensus is that another rate cut is coming. Some think that the Fed will reduce key short-term interest rates by another .750 of a discount point, but most think the Fed will make a half-point move and wait until early next year before making another change. The post meeting statement also may a significant influence on the markets and mortgage rates as investors look for any indication of what and when the Fed may do next.

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: closing, consumer price index, core data, decline, economic releases, Fed, federal open market committee, index cpi, inflationary pressures, lock, open market committee, producer price index, stock losses, tomorrow, U.S., volatile food, week

Weekly Mortgage Rate Lock Advisory – Sunday Dec. 14th

Rate Lock Advisory – Sunday Dec. 14th

This week is moderately busy in terms of the number of economic releases scheduled for release with four on the agenda, but the biggest news will likely be the last Federal Open Market Committee (FOMC) meeting of the year Tuesday. Only one of the four economic reports is considered to be of high importance, so the data may not be the biggest influence eon the markets and mortgage rates this week.

November’s Industrial Production data is scheduled to be posted mid-morning tomorrow. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. Analysts are expecting this report to show a 0.5% decline in output. A larger than expected drop would be good news for bonds, while a stronger than expected reading may result in slightly higher mortgage pricing.

The week’s most important economic data comes Tuesday morning when November’s Consumer Price Index (CPI) is posted. It is similar to last week’ s Producer Price Index, except it tracks inflationary pressures at the consumer level of the economy. Current forecasts call for an decline of 1.3% in the overall index and a 0.1% rise in the core data reading. The core data is watched more closely because it excludes more volatile food and energy prices, giving a more stabile reading for analysts to consider.

November’s Housing Starts report will also be released Tuesday morning, but I don’t see it causing much movement in mortgage rates. This report, which is expected to show a decline in starts of new homes, gives us an indication of housing sector strength and future mortgage credit demand. But, it can be considered the least important of this week’s news.

The last FOMC meeting of the year is Tuesday and will adjourn at 2:15 PM ET. There is much debate about what the Fed will do at this meeting, but the general consensus is that another rate cut is coming. Some think that the Fed will r educe key short-term interest rates by another .750 of a discount point, but most think the Fed will make a half-point move and wait until early next year before making another change. The post meeting statement also may a significant influence on the markets and mortgage rates as investors look for any indication of what and when the Fed may do next.

The last piece of economic news will be posted Thursday morning with the release of the Conference Board’s Leading Economic Indicators (LEI) for the month of November. This 10:00 AM release attempts to measure economic activity over the next three to six months. It is expected to show a sizable decline in activity, meaning that it predicts slower economic activity over the next several months. This probably will not have much of an impact on bond prices or affect mortgage rates unless it exceeds current forecasts of a 0.5% decline from October’s reading. If it shows a larger decline, the bond market may move slightl y higher, improving mortgage rates slightly.

Overall, expect to see a pretty volatile week in the financial markets and mortgage pricing. The most important day of the week is certainly Tuesday with the CPI and the FOMC meeting both scheduled. However, we may see noticeable movement in rates more than one day this week, so, please 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: closing, consumer price index, core data, decline, economic releases, Fed, federal open market committee, index cpi, LEI, morning tomorrow, mortgage credit, open market committee, producer price index, Tuesday, U.S., volatile food, week

Weekly Mortgage Rate Lock Advisory – Sunday Dec. 7th

Rate Lock Advisory – Sunday Dec. 7th

This week is moderately busy in terms of the number of economic releases scheduled for release. There are four on the agenda but two of them are considered to be very important that can heavily influence the markets and mortgage pricing. In addition, there is a 10-year Treasury Note auction Thursday that may hurt or help boost bond prices, depending on how strong of a demand there is in the sale. Since all of the data is scheduled for release Thursday and Friday, the most movement in rates will likely be the latter part of the week.

There is no relevant economic news scheduled for release tomorrow, Tuesday or Wednesday. October’s Goods and Services Trade Balance report will be posted early Thursday morning. This report gives the size of the U.S. trade deficit, but it is the week’s least important release. It is expected to show a $54.0 billion trade deficit. Unless it varies greatly from forecasts, I don’t expect it to affect mortgage pricing.

Th e first important data of the week comes Friday morning with the release of November’s Retail Sales report. This data is very important to the financial markets because it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely. Current forecasts call for it to show a 1.4% decline in sales from October’s levels. If it reveals weaker than expected sales, the bond market should thrive and mortgage rates should fall as a result. A stronger than expected reading could fuel stock market gains and push mortgage rates higher Friday morning.

Also Friday and just as important as the sales data, the Labor Department will release November’s Producer Price Index (PPI). This index measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it e xcludes more volatile food and energy prices. If Friday’s release reveals stronger than expected readings, indicating that inflationary pressures are rising, the bond market will probably react negatively and should drive mortgage rates higher. If we see in-line or weaker than expected numbers, the bond market should fair well and mortgage rates should fall. Current forecasts are showing a 1.8% drop in the overall index and a 0.2% rise in the core data.

The fourth and final report of the week is December’s preliminary reading to the University of Michigan’s Index of Consumer Sentiment Friday morning. This index measures consumer willingness to spend and can usually have enough of an impact on the financial markets to change mortgage rates slightly. However, with the Retail Sales and PPI reports out before this data, I don’t expect it to affect mortgage rates much. It is expected to show a reading of 58.0, which would be an increase from last month’s final reading .

Overall, expect to see a pretty volatile week in the financial markets and mortgage pricing with the most movement Thursday and Friday. Friday’s Retail Sales and PPI reports can cause a great deal of movement in rates. Due to the expected volatility, I am holding the current lock recommendations. However, please maintain constant 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… Lock if my closing was taking place between 21 and 60 days… Lock 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: 10 year treasury, 10 year treasury note, balance report, bond, core data, economic releases, lock, producer level, producer price index, producer price index ppi, Release, release tomorrow, stock market gains, Thursday, U.S., week

Daily Mortgage Rate Lock Advisory – Tuesday Nov. 18th

Rate Lock Advisory – Tuesday Nov. 18th

Tuesday’s bond market has opened in positive territory again, despite early stock gains. The stock markets are rebounding from yesterday’s 223 point loss in the Dow with fairly strong gains during morning trading. The Dow is currently up 181 points while the Nasdaq has gained 11 points. The bond market is currently up 9/32, which will likely improve this morning’s mortgage rates by approximately .125 of a discount point.

The Labor Department gave us the first of the week’s two key inflation readings. They reported that the PPI fell a whopping 2.8% that was a much larger drop than analysts had forecasted. However, the more important core data reading that excludes more volatile food and energy prices rose 0.4% when analysts were expecting to see a 0.1% rise. This means that prices for non food and energy costs rose more than expected, which is considered bad news for bonds and mortgage rates.

Today’s markets are being boosted by favorable comme nts by Treasury Secretary Paulson that the Fed bailout program was making progress. Many lawmakers had questioned the usage of the money for the program but market participants liked what they heard, helping to fuel this morning’s buying in stocks and bonds.

Tomorrow’s only data is October’s Housing Starts. This data gives us an indication of housing sector strength, but usually does not have a noticeably impact on mortgage rates. I don’t expect this month’s version to be any different unless it varies greatly from analysts forecast. It is expected to show a decline in starts of new homes.

Tomorrow afternoon brings us the release of the minutes to the last FOMC meeting. These may be a major mover of the markets or could be a non-factor, depending on what they say. The key will be concerns over inflation and the Fed’s next move. If the Fed members were concerned about inflationary pressures, we may see the bond market move lower and mortgage rates highe r tomorrow afternoon. However, if they indicate a likelihood of another rate cut in the coming months, we should see the bond market rise and mortgage rates drop during afternoon trading.

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.

Tags: bond, closing, core data, Fed, fed bailout, Float, fomc meeting, inflationary pressures, market move, market participants, Secretary Paulson, stock gains, stocks and bonds, tomorrow, treasury secretary, volatile food

Daily Mortgage Rate Lock Advisory – Monday Nov. 17th

Rate Lock Advisory – Monday Nov. 17th

Monday’s bond market has opened in positive territory following another round of stock weakness that has bonds looking more attractive to investors. The stock markets are continuing Friday’s selling with the Dow currently down 162 points and the Nasdaq down 30 points. The bond market is currently up 11/32, which should improve this morning’s mortgage rates by approximately .125 – .250 of a discount point.

Today’s Industrial Production report revealed a much larger than expected increase in manufacturer output. The 1.3% increase greatly exceeded analysts’ forecasts of a 0.1% decline in output, meaning that U.S. factories, mines and utilities were busier than many had thought. This is considered to be negative news for bonds and mortgage rates.

The rest of the week brings us the release of four more monthly reports for the markets to digest along with the minutes from the last FOMC meeting. The first of the week’s two key inflation readings will be posted early tomorrow morning when October’s Producer Price Index (PPI) is released. The PPI measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices.

If the core data reveals stronger than expected readings, indicating that inflationary pressures are rising, the bond market will probably react negatively and should drive mortgage rates higher. If we see in-line or weaker than expected numbers, mortgage rates should fall. Current forecasts are calling for a decline of 1.8% in the overall reading and a 0.1% increase in the core reading.

Overall, look for tomorrow or Wednesday to be the most important day of the week with the PPI and CPI reports scheduled for release those days. They are the two most important releases of the week and ca n individually lead to large swings in the markets and mortgage rates. The FOMC minutes may also heavily influence trading and deserve to be watched also. I think this will be a fairly active week for mortgage rates, so please maintain regular contact with your mortgage professional.

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: bond, bond market, closing, core data, FOMC, inflationary pressures, negative news, PPI, producer level, producer price index, producer price index ppi, U.S., volatile food, week

Weekly Rate Lock Advisory – Sunday Nov. 16th

Rate Lock Advisory – Sunday Nov. 16th

This week brings us the release of five monthly reports for the markets to digest along with the minutes from the last FOMC meeting. The first report scheduled for release this week is October’s Industrial Production tomorrow morning. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to reveal a 0.1% decline in output. Stronger levels of production would be considered bad news for the bond market and mortgage rates.

We will get the first of this week’s two key inflation readings early Tuesday morning when October’s Producer Price Index (PPI) is posted. The PPI measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. If it reveals stronger than expected readings, in dicating that inflationary pressures are rising, the bond market will probably react negatively and should drive mortgage rates higher. If we see in-line or weaker than expected numbers, mortgage rates should fall. Current forecasts are calling for a decline of 1.5% in the overall reading and a 0.2% increase in the core reading.

Wednesday’s only data is October’s Housing Starts. This data gives us an indication of housing sector strength, but usually does not have a noticeably impact on mortgage rates. I don’t expect this month’s version to be any different unless it varies greatly from analysts forecast. It is expected to show a decline in starts of new homes.

Also Wednesday is the afternoon release of the minutes to the last FOMC meeting. These may be a major mover of the markets or could be a non-factor, depending on what they say. The key will be concerns over inflation and the Fed’s next move. If the Fed members were concerned about inflationary pr essures, we may see the bond market move lower and mortgage rates higher Wednesday afternoon. However, if they indicate a likelihood of another rate cut in the coming months, we should see the bond market rise and mortgage rates drop during afternoon trading.

October’s Consumer Price Index (CPI) will be released at 8:30 AM ET Thursday morning. This index is similar to Tuesday’s PPI, except it measures inflationary pressures at the more important consumer level of the economy. The overall portion is expected to show a drop of 0.8% while the core data is expected to rise 0.2%.

Overall, look for Tuesday or Thursday to be the most important day of the week with the PPI and CPI reports scheduled for release those days. They are the two most important releases of the week and can individually lead to large swings in the markets and mortgage rates. The FOMC minutes may also heavily influence trading and deserve to be watched also. I think this will be a fa irly active week for mortgage rates, so please maintain regular contact with your mortgage professional.

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: bond, core data, early tuesday, fomc meeting, inflationary pressures, mortgage rates, PPI, producer level, producer price index, producer price index ppi, Release, U.S., volatile food, week

Rate Lock Advisory – Thursday Oct. 16th

Rate Lock Advisory – Thursday Oct. 16th Thursday’s bond market opened in negative territory but has since rebounded as the markets continue their see-saw activity. The stock markets are posting sizable losses after yesterday’s sell-off dropped the Dow 733 points. With the Dow down 190 points this morning, it has given back all of Monday’s record gain of 936 points. The Nasdaq is currently down 30 points and is also below its Friday closing level. The bond market is currently up 2/32, but due to a significant rally late yesterday, we should see mortgage rates improve this morning by approximately .500 of a discount point or .125 of a percent in rate. This morning’s economic data added more concern about the status of the economy and the likelihood of a quick recovery. The Labor Department said that the Consumer Price Index (CPI) for September went unchanged from August’s level and that the core data that excludes more volatile food and energy prices rose only 0.1%. Both of those readings were below forecasts, indicating that inflationary pressures are weaker than thought at the consumer level of the economy. That is good news for the bond market and mortgage rates. The biggest surprise came from September’s Industrial Production data that showed a whopping 2.8% monthly drop in output. This was the biggest monthly decline in 34 years and points towards a quickly slowing manufacturing sector. That is also good news for the bond market and mortgage rates. The Labor Department said that 461,000 new claims for unemployment benefits were filed last week. This was a smaller number than was expected but since the data tracks only a week’s worth of claims, it had little impact on trading this morning. The remaining two reports are both scheduled for release tomorrow morning. September’s Housing Starts is the first, but is the week’s least important piece of monthly data. It gives us an indication of housing sector strength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates. The last report of the week is October’s preliminary reading to the University of Michigan’s Index of Consumer Sentiment late tomorrow morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 65.0, down from September’s final of 70.3. 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: bond, closing, consumer price index, core data, index cpi, inflationary pressures, mortgage credit, negative territory, record gain, release tomorrow, September, unemployment benefits, volatile food, week

Rate Lock Advisory – Wednesday Oct. 15th

Rate Lock Advisory – Wednesday Oct. 15th

Wednesday’s bond market opened well in positive territory but has since given back those gains. The stock markets are showing more losses with the Dow down 328 points and the Nasdaq down 55 points. The bond market is currently nearly unchanged from yesterday’s close, but we will still see an increase of approximately .375 of a discount point in this morning’s mortgage rates due to significant selling in bonds late yesterday.

September’s Retail Sales report was released early this morning. It showed a drop 1.2% drop in sales that was much weaker than expected. Analysts had called for a 0.7% decline, meaning that consumers were spending much less than many had thought. This is good news because consumer spending makes up two thirds of the U.S. economy, which translates into weaker economic activity and lower inflationary pressures. Those two factors make long-term securities such as mortgage related bonds more attractive to investors.

Today’s second report was September’s Producer Price Index (PPI). It gave us mixed results with an over reading of down 0.4% that matched forecasts, but a higher than expected core data reading of 0.4%. This means that prices at the producer level of the economy rose more than was expected if food and energy prices are excluded from the equation. This is bad news for bonds because rising prices means inflation is still a threat to the economy.

Also scheduled for release today is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.

Tomorrow morning also brings us two economic releases. The first is September’s Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading could raise inflation concerns in the bond market and push mortgage rates higher tomorrow. However, a smaller than expected reading should ease inflation concerns and could lead to lower mortgage rates.

September’s Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August’s level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.

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.

Tags: bond, consumer price index, core data, fed beige book, fomc meetings, index cpi, inflationary pressures, producer level, producer price index, producer price index ppi, Release, release tomorrow, September, U.S.

Rate Lock Advisory – Tuesday Sep. 16th -Update

Rate Lock Advisory – Tuesday Sep. 16th

TUESDAY AFTERNOON UPDATE:

Today’s FOMC meeting has adjourned with an announcement of no change to key short-term interest rates. The post-meeting statement indicated that the Fed felt key rates were low enough to spur economic activity. The stock markets initially reacted negatively to the news since traders were expecting a rate cut, but then staged a rally that pushed the Dow up 141 points and the Nasdaq up 28 points.

The bond market did not fair so well. As expected, as soon as stocks started to rise, bonds suffered. The same funds that were moved into bonds and drove prices higher yesterday, now were hurting bonds as they were shifted back into stocks. The result was the bond market closing down 26/32 and a sizable increase to mortgage rates. I suspect that there is more room for bonds to fall if stocks continue to move higher. Therefore, holding the lock recommendations seem to be the prudent stance at this time.

Today’s on ly relevant economic data was August’s Consumer Price Index (CPI). It showed a decline in the overall reading of 0.1% and an increase of 0.2% in the core data reading. Both of these readings matched forecasts, therefore, they had little impact on the bond market or mortgage rates.

August’s Housing Starts report is the only relevant data being posted tomorrow morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand, but is usually considered to be of low importance to the financial markets. Tomorrow’s report is expected to show a drop in new housing starts from July’s levels.

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… 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, closing, consumer price index, core data, fomc meeting, index cpi, lock, mortgage credit, rate, refinancing a home, relevant data, report, sizable increase, stock markets, Tuesday