Daily Mortgage Rate Lock Advisory

Daily Mortgage Rate Lock Advisory – Friday Jan. 23rd

Rate Lock Advisory – Friday Jan. 23rd

Friday’s bond market has opened in negative territory yet again even with the stock markets mixed. The Dow is currently down 109 points while the Nasdaq is currently up 3 points. The bond market is currently down 17/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point.

There is no relevant economic news scheduled for release today. If the stock markets remain near current levels, we should see bond prices and mortgage rates likely follow suit. However, a rebound in stocks could lead to higher mortgage rates this afternoon.

Next week brings us the release of several relevant reports for the markets to digest. There are two scheduled to be posted Monday, but neither are considered to be highly important. We will get December’s Existing Home Sales and Leading Economic Indicators late Monday morning.

The rest of the week has several important reports scheduled for release in addition t o the first FOMC meeting of the year. I am expecting to see a very active week in the markets and mortgage pricing. 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 prices, closing, existing home sales, fomc meeting, leading economic indicators, lock, mortgage rates, negative territory, refinancing a home, Release, relevant reports, rest of the week, week

Daily Mortgage Rate Lock Advisory – Monday Dec. 22nd

Rate Lock Advisory – Monday Dec. 22nd

Monday’s bond market has opened flat with no relevant economic news on tap for today and a fairly uneventful morning in stocks. The stock markets are showing losses, but they can be considered pretty minor compared to recent sessions. The Dow is currently down 17 points while the Nasdaq has lost 20 points. The bond market is currently unchanged from Friday’s close, which should keep this morning’s mortgage pricing near Friday’s levels.

The rest of the week brings us the release of six monthly or quarterly economic reports and a fairly important Treasury auction tomorrow. Most of the data being released is not considered to be of high importance to the markets, but with the Christmas holiday falling during the week we can expect very thin trading. We also may see profit-taking by some firms to capture the sizable gains in bonds this year as it winds down, so by no means can we be guaranteed a quiet week.

There is no relevant economic news schedul ed for release today, but four of the week’s reports are scheduled to be posted tomorrow. The first is the final revision to the 3rd Quarter GDP. I don’t think this data will have an impact on mortgage rates unless it varies greatly from its expected reading. Last month’s first revision showed that the economy contracted at a 0.5% annual pace during the quarter and this month’s revision is expected to show the same.

The next two are November’s Existing and New Home Sales reports. The Existing Home Sales release will come from the National Association of Realtors while the New Home Sales data is a Commerce Department report. Both give us a measurement of housing sector strength and mortgage credit demand, however, neither are considered to be of high importance. Both of the reports are expected to show a drop in sales.

The fourth report of the day also comes late morning when the revised University of Michigan Index of Consumer Sentiment for December is posted. Current forecasts are calling for a small downward revision from the preliminary reading of 59.1. This is important because rising consumer confidence indicates that consumers may be more apt to make large purchases in the near future. An unexpected upward revision could lead to higher mortgage rates tomorrow.

The last event tomorrow is the 5-year Treasury Note auction. If the sale is met with a decent demand from investors, we could see interest in other notes and bonds such as mortgage-related bonds increase during afternoon trading. But, a lackluster interest from investors may also lead to weakness in bonds and possible upward afternoon revisions to mortgage pricing.

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 pl ace 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: association of realtors, closing, commerce department report, existing home sales, index of consumer sentiment, lock, michigan index, mortgage credit, national association of realtors, quarter gdp, tomorrow, treasury auction, week

Weekly Mortgage Rate Lock Advisory – Sunday Dec. 21st

Rate Lock Advisory – Sunday Dec. 21st

This significantly shortened trading week brings us the release of six monthly or quarterly economic reports and a fairly important Treasury auction. Most of the data being released is not considered to be of high importance to the markets, but with the Christmas holiday falling during the week we can expect very thin trading. This means that we may see a larger reaction than normal to some news because there will be fewer traders working and less transactions being made. We also may see profit-taking by some firms to capture the sizable gains in bonds this year as it winds down, so by no means can we be guaranteed a quiet week.

There is no relevant economic news scheduled for release tomorrow. Five of the week’s events are scheduled for Tuesday. The first is the final revision to the 3rd Quarter GDP. I don’t think this data will have an impact on mortgage rates unless it varies greatly from its expected reading. Last month’s first revision showed that the economy contracted at a 0.5% annual pace during the quarter and this month’s revision is expected to show the same.

The next two are November’s Existing and New Home Sales reports. The Existing Home Sales release will come from the National Association of Realtors while the New Home Sales data is a Commerce Department report. Both give us a measurement of housing sector strength and mortgage credit demand, however, neither are considered to be of high importance. Both of the reports are expected to show a drop in sales.

The fourth report of the day also comes late morning when the revised University of Michigan Index of Consumer Sentiment for December is posted. Current forecasts are calling for a small downward revision from the preliminary reading of 59.1. This is important because rising consumer confidence indicates that consumers may be more apt to make large purchases in the near future. An unexpected upward revision could lead to higher mortga ge rates Tuesday.

The last event on Tuesday that is worth noting is the 5-year Treasury Note auction. If the sale is met with a decent demand from investors, we could see interest in other notes and bonds such as mortgage-related bonds increase during afternoon trading. But, a lackluster interest from investors may also lead to weakness in bonds and possible upward afternoon revisions to mortgage pricing.

The remaining two reports are scheduled for release Wednesday at 8:30 AM. This is when November’s Personal Income and Outlays data and Durable Goods Orders will be posted. The Income and Outlays report will give us an important measurement of consumer ability to spend and current spending habits. Since consumer spending makes up two-thirds of the U.S. economy, any related data usually has a fairly significant impact on the financial markets and mortgage rates. Current forecasts are calling for no change in income and a 0.8% decli ne in spending. If this report reveals weaker than expected readings, we should see the bond market improve and mortgage rates drop slightly Wednesday

The last piece of data will be the Commerce Department’s Durable Goods Orders for November. This data gives us an important measurement of manufacturing sector strength by tracking orders for big-ticket items or products that are expected to last at least three years. Analysts are expecting the report to show a decline in the neighborhood of 3.1%. A larger decline would indicate that the manufacturing sector was weaker than many had thought. This would be good news for the bond market and should drive mortgage rates lower. However, a smaller than expected drop in orders could lead to mortgage rates moving higher early Wednesday morning.

Overall, I am expecting to see some movement in the markets and mortgage rates, but nothing drastic unless we get some surprising results from the week ‘s data. The bond market will close early Wednesday and Friday and be closed all day Thursday. This means that firms that trade bonds will likely be keeping only a skeleton staff most of the week. Still, my biggest fear between now and the end of the year will be selling bonds to capture profits from the significant rally of the past several weeks. That could lead to bonds falling and mortgage rates rising.

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: association of realtors, closing, commerce department report, downward revision, existing home sales, index of consumer sentiment, lock, mortgage credit, national association of realtors, quarter gdp, release tomorrow, report, treasury auction, U.S., Wednesday, week

Daily Mortgage Rate Lock Advisory – Sunday Nov. 23th

Rate Lock Advisory – Monday Nov. 24th

This holiday-shortened week brings us the release of an abundance of economic reports for the markets to digest. There are seven reports on the calendar with several being considered to be of high importance to the bond market and mortgage rates. With multiple moderately or highly important reports due out more than one day this week, we will likely see a fair amount of movement in mortgage rates day to day.

October’s Existing Home Sales data will be posted late this morning. This report, along with Wednesday’s New Home Sales data are the least important reports of the week. They give us a measurement of housing sector strength and mortgage credit demand, but the bond market generally does not rely heavily on their results.

The first important data comes early tomorrow morning brings us the first revision to the 3rd Quarter Gross Domestic Product (GDP) reading. The GDP revision is expected to show a downward revision from last month’s preliminary r eading of -0.3%. Current forecasts call for a reading of approximately -0.6%, meaning that there was less economic growth during the third quarter than previously thought. This would be good news for the bond market and mortgage rates.

Late tomorrow morning, November’s Consumer Confidence Index (CCI) will be posted. The Conference Board will release the CCI for the month of November at 10:00 AM ET, giving us a measurement of consumer willingness to spend. If consumer confidence is rising, analysts believe that consumers are more apt to make larger purchases, essentially fueling economic growth. This raises inflation concerns and usually pushes mortgage rates higher. Analysts are expecting a small increase from last month’s 38.0 reading to somewhere around 39.5. A weaker than expected reading should be good news for mortgage rates, but a stronger than expected reading could push mortgage rates higher Tuesday.

There are four importan t reports scheduled to be posted Wednesday morning. October’s Durable Goods Orders is the first and will be posted early morning. This data helps us measure manufacturing strength by tracking orders for big-ticket items. It is expected to show a 2.5% drop in new orders. A larger decline would be good news for the bond market and mortgage rates.

The second is October’s Personal Income and Outlays data. This data is thought to measure consumers’ ability to spend and their current spending habits. It is expected to show that income rose 0.1% and that spending fell 0.7%. Smaller than expected readings would be good news for bonds and could lead to improvements in mortgage rates.

The revised November reading to the University of Michigan Index of Consumer Sentiment will also be posted late Wednesday morning. Analysts are expecting to see little change to the preliminary reading of 57.9. Unless we see a significant variance from the fore casted reading, I don’t think this data will cause much movement in mortgage rates Wednesday.

Overall, I believe that it is going to be an active week for the mortgage market. Today or Friday will be the least important day of the week and either Tuesday or Wednesday will be the most important. The bond market will close early Wednesday and remain closed Thursday in observance of the Thanksgiving Day holiday. I still expect to see plenty of movement in rates the remaining days, so please be careful 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… 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 financi ng 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 confidence index, consumer confidence index cci, downward revision, economic reports, existing home sales, existing home sales data, inflation concerns, mortgage credit, mortgage rates, Wednesday, week

Daily Mortgage Rate Lock Advisory – Friday Nov. 21st

Rate Lock Advisory – Friday Nov. 21st

Friday’s bond market has opened sharply lower, giving back much of its gains from the past two days. The stock markets are showing gains but no major rebound from yesterday’s beating. The Dow is currently up 35 points after falling 444 points yesterday while the Nasdaq has gained 8 points. The bond market is not having a good day, currently down 39/32, as investors shift funds back out of bonds. This will likely push this morning’s mortgage rates higher by approximately .375 of a discount point.

Today’s losses effectively erase yesterday’s rally that pushed yields on the major Treasury bonds and Notes to their lowest levels since 1962. As is often the case, the funds will move out of bonds just as quickly, if not faster as they flowed in. The result usually is a spike in mortgage pricing as investors move away from the safety appeal that led to funds being moved into bonds earlier this week.

There is no relevant economic data scheduled for rel ease today. I would not be surprised to see further volatility in the stock and bond markets as the day progresses. This may affect mortgage rates this afternoon if bonds recover some of their losses or fall much further form their current levels.

Next week is pretty busy in terms of economic releases scheduled to be posted but also is a holiday shortened week. Monday brings us the release of October’s Existing Home Sales data that will give us a measurement of housing sector strength. It is expected to show a decline in home resales last month. But look for more details on next week’s data and events in Sunday’s weekly preview of the upcoming week.

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… T his 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: beating the dow, bond, bond markets, closing, economic releases, existing home sales, existing home sales data, Float, home resales, lock, mortgage rates, refinancing a home, shift funds, treasury bonds, week, yesterday

Rate Lock Advisory – Sunday Oct. 26th

Rate Lock Advisory – Sunday Oct. 26th

This week is packed with economic releases and major events that will likely lead to a fair amount of volatility in the markets and mortgage pricing. There are seven reports scheduled for release along with another FOMC meeting. The first of the week’s news comes late tomorrow morning with the release of September’s New Home Sales. This data covers the remaining 15% of home sales that last week’s Existing Home Sales report tracked and is this week’s least important data. It is expected to show a decline in sales, but regardless of its results I am not expecting it to have a significant impact on mortgage rates tomorrow.

The first important data will be posted Tuesday morning with the release of the Consumer Confidence Index (CCI) for the month of October. This Conference Board index will be posted at 10:00 AM and gives us a measurement of consumer willingness to spend. It is expected to show a sizable decline in confidence from last month’s 59.8 reading, ind icating that consumers are less likely to make large purchases in the near future. As long as the reading doesn’t exceed the forecasted 52.0, we will likely see the bond market react favorably to this report. This data is watched closely because consumer spending makes up two-thirds of the U.S. economy.

The week’s FOMC meeting is a two-day meeting that begins Tuesday and adjourns Wednesday afternoon. Assuming the Fed stands pat and leaves rates unchanged, traders will be looking at the post-meeting statement for any indication of the Fed’s next move. Since there is a fair amount of uncertainty and a lack of a strong consensus of what the Fed will do here, the move itself, if it happens, will likely cause plenty of volatility in addition to the post-meeting statement. The meeting will adjourn at 2:00 PM Wednesday, so look for quite a bit of volatility during afternoon hours.

Wednesday morning, the Commerce Department will post Durable Goods Orders for September. This report gives us a measurement of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items. Analysts are currently calling for a drop in new orders of approximately 1.0%. If we see a smaller than expected decline in orders, mortgage rates will probably rise as bond prices fall. A weaker than expected reading should be good news for the bond market and mortgage rates, but this data can be quite volatile from month to month and is difficult to forecast.

The next relevant data is the preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) early Thursday morning. The GDP is considered to be the benchmark measurement of economic growth because it is the sum of all goods and services produced in the U.S. and therefore is likely to have a major impact on the financial markets and mortgage pricing. There are three versions of this report, each a month apart. Thursday’s release is the first and usually h as the biggest impact on the markets. Current forecasts call for a decline of approximately 0.5% in the GDP. If this report does show a decline, I am expecting to see the bond market rally and mortgage rates to fall.

There are three reports scheduled for release Friday. The first is the 3rd Quarter Employment Cost Index (ECI), which tracks employer costs for salaries and benefits. Rapidly rising costs raises wage inflation concerns and may hurt bond prices. It is expected to show an increase in costs of 0.7%. A smaller than expected increase would be good news for bonds and mortgage rates.

September’s Personal Income and Outlays report will also be posted early Friday. This data gives us an indication of consumer ability to spend and current spending habits. It is important to the markets because consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making econ omic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to investors. Analysts are expecting to see an increase of 0.1% in income and decline in outlays of 0.2%.

The week’s last report comes at 10:00 AM ET Friday when the University of Michigan updates their Index of Consumer Sentiment for this month. Current forecasts show this index remaining nearly unchanged from this month’s preliminary reading of 57.5. This index is important because it helps us measure consumer confidence, which is believed to indicate consumers’ willingness to spend. Since consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be important.

Overall, it is difficult to peg a single day of the week as being the most important. The data being posted Tuesday, Wednesday and Thursday is a ll very important to the markets. The FOMC meeting is the single most important event of the week, but we may see noticeable movement in mortgage rates several days this week. Accordingly, please maintain 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… 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: afternoon hours, board index, bond, consumer confidence index, consumer confidence index cci, decline, durable goods orders, economic releases, existing home sales, fomc meeting, mortgage rates, Release, tuesday morning, U.S., week

Rate Lock Advisory – Friday Oct. 24th

Rate Lock Advisory – Friday Oct. 24th

Friday’s bond market opened in positive territory following early stock weakness. The stock markets are continuing their downward spiral with the Dow down 300 points and the Nasdaq down 40 points. The bond market is currently up 20/32, but we will still see an increase in this morning’s mortgage rates of approximately .250 – .375 of a discount point due to weakness late yesterday.

The only economic news released today was September’s Existing Home Sales data from the National Association of Realtors. They reported an increase of over 5% in home resales last month when the report was expected to show an increase of approximately 1%. This means that sales activity was stronger than expected last month. That can be considered a negative for bonds and mortgage rates, but the market seems to be giving that data little weight.

The recent rapid improvement in bonds has me concerned that we may see profit taking by traders that could push mortgage rates higher. It appears that there is no consensus in the markets regarding whether or not this is the bottom for the stock markets. It seems there is still room for the major indexes to fall further, but this may not necessarily mean that rates will improve as a result, indicating that the risk versus reward factor of continuing to float an interest rate is leaning heavily to the risk side in my opinion. Accordingly, please maintain constant contact with your mortgage professional if you have not locked an interest rate yet.

Next week is packed with economic releases along with the next FOMC meeting. The first data comes Monday when we will get New Homes Sales for September. This is the sister report to today’s Existing Home Sales release and is also not considered to be of much importance to the markets. It is next week’s least important report.

The rest of the week brings us important reports every day. There is another FOMC meeting that adjourns W ednesday afternoon that will likely lead to plenty of volatility in the markets. Look for details on next week’s data and 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: association of realtors, closing, downward spiral, existing home sales, existing home sales data, fomc meeting, home resales, lock, national association of realtors, new homes sales, rapid improvement, rate, stock, week

Rate Lock Advisory – Thursday Oct. 23rd

Rate Lock Advisory – Thursday Oct. 23rd

Thursday’s bond market opened flat but has since slipped into negative ground following early gains in stocks. The stock markets are rebounding from yesterday’s afternoon sell off that pushed the Dow down over 500 points and the Nasdaq down 80 points. I suspect that this morning’s rally may be short-lived so we should be looking for afternoon volatility again.

The Dow is currently up 180 points while the Nasdaq has gain 13 points. The bond market is currently down 5/32, which will likely push this morning’s mortgage rates higher by approximately .125 – .250 of a discount point. If the stock markets due give back their current gains, we may see improvements to mortgage rates later in the day.

The only economic news released this morning was last week’s initial unemployment claims from the Labor Department. They reported that new claims rose to 478,000 last week, which was an increase of approximately 15,000. Analysts were expecting to see lit tle change form the previous week, meaning that the employment sector is still showing signs of weakness. This is good news for bonds, but this particular report is not considered to be of high importance because it tracks only a week’s worth of claims.

Tomorrow morning brings us the release of September’s Existing Home Sales data from the National Association of Realtors. This report gives us an indication of housing sector strength and mortgage credit demand. I don’t see it having much of an influence on the bond market or mortgage rates, but a reading that varies greatly from analysts’ forecasts could lead to a slight change in mortgage pricing. It is expected to show a slight increase in sales from August to September.

The recent rapid improvement in bonds has me concerned that we may see profit taking by traders that could push prices lower and mortgage rates higher. It appears that there is no consensus in the markets regarding whether or not th is is the bottom for the stock markets. It appears there is still room for the major indexes to fall further, but this may not necessarily mean that rates will improve as a result. That means that the risk versus reward factor of continuing to float an interest rate is leaning heavily to the risk side in my opinion. Accordingly, 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… 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: association of realtors, bond, bond market, closing, employment sector, existing home sales, existing home sales data, initial unemployment claims, lock, mortgage credit, national association of realtors, rapid improvement, rate, stock, stock markets, week

Rate Lock Advisory – Wednesday Oct. 22nd

Rate Lock Advisory – Wednesday Oct. 22nd

Wednesday’s bond market has opened in positive territory as investors continue to dump stocks this morning. The stock markets showing significant losses with the Dow currently down 324 points and the Nasdaq down 36 points. The bond market is currently up 10/32, which should improve this morning’s mortgage rates by another .125 to .250 of a discount point.

There is no relevant economic data scheduled for release today, therefore the bond market is relying on stocks for direction. With stocks still falling, investors are eyeing bonds as a parking space for funds, at least temporarily. This has benefited mortgage rates this week, however, I don’t see that as a situation that will likely last long. Accordingly, I am shifting to a lock recommendation for immediate and short-term closings.

The only data scheduled for release tomorrow is weekly unemployment claims from the Labor Department. Analysts are expecting to see that 465,000 new claims were filed last week. This would be a slight increase from the previous week and would basically be good news for the bond market and mortgage rates. But, since this data tracks only a week’s worth of claims, its influence on the markets is usually limited unless it varies greatly from forecasts.

The only other data scheduled for release this week is September’s Existing Home Sales Friday morning. This report gives us an indication of housing sector strength and mortgage credit demand. I don’t see it having much of an influence on the bond market or mortgage rates, but a reading that varies greatly from analysts’ forecasts could lead to a slight change in mortgage pricing. It is expected to show a slight increase in sales from August to September.

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 pla ce 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, economic data, existing home sales, labor department, lock, mortgage credit, mortgage rates, refinancing a home, Release, release tomorrow, stock markets, unemployment claims, week

Rate Lock Advisory – Tuesday Oct. 21st

Rate Lock Advisory – Tuesday Oct. 21st

Tuesday’s bond market has opened up sharply following early stock losses. The stock markets showing sizable losses, erasing a good portion of yesterday’s late rally. The Dow is currently down 2 02 points while the Nasdaq has lost 47 points. The bond market is currently up 22/32, which will likely improve this morning’s mortgage rates by approximately .500 of a discount point or .125 in rate.

There is no relevant economic data scheduled for today or tomorrow. As expected, we are seeing the bond market fluctuate with stocks. Since stocks are in selling mode, the recent jump in bond yields has made bonds more attractive to investors. This is especially true with stocks unable to keep solid footing. The result is a significant improvement to this morning’s mortgage rates.

With no data scheduled for release tomorrow and only weekly unemployment claims due Thursday, look for similar action in bonds the next two days. I feel there is still more roo m for bonds to improve and mortgage rates to move lower, so I am holding the float recommendation for the time being. However, that may change at any time.

The only other data scheduled for release this week is September’s Existing Home Sales Friday morning. This report gives us an indication of housing sector strength and mortgage credit demand. I don’t see it having much of an influence on the bond market or mortgage rates, but a reading that varies greatly from analysts’ forecasts could lead to a slight change in mortgage pricing. It is expected to show a slight increase in sales from August to September.

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, bond market, bond yields, closing, existing home sales, Float, mortgage credit, mortgage rates, rate, refinancing a home, release tomorrow, stock losses, stock markets, Tuesday, unemployment claims