noticeable increase

Daily Mortgage Rate Lock Advisory – Friday Nov. 28th

Rate Lock Advisory – Friday Nov. 28th

Friday’s bond market has opened up slightly for what appears will be a very uneventful day in the markets. The stock markets have been fluctuating between positive and negative ground but at the moment are showing relatively minor losses with the Dow down 14 points and the Nasdaq down 17 points. The bond market is currently up 4/32, but we will still see a noticeable increase in this morning’s mortgage rates as traders balance portfolios after a fairly volatile week.

There is no relevant economic news scheduled for release today. The bond market will close again at 2:00 PM and will reopen for regular hours Monday morning. I don’t think the early close will affect mortgage rates any further today, but with mortgage bonds not doing so well today, we may be set for a increase in rates come Monday morning.

Next week brings us the release of several important pieces of economic data that can heavily influence the markets and mortgage rates. The fi rst comes Monday morning with the release of November’s Institute for Supply Management’s (ISM) manufacturing index. This release will give us an indication of manufacturer sentiment and is considered to be fairly important. Monday’s report is expected to show a reading of 38.0, which would a decline from October’s 38.9/ This would be good news for bonds and mortgage rates because the softening sentiment indicates that the manufacturing sector is still slowing. That translates into a weakening economy and eases inflation concerns.

There is relevant economic news scheduled for four of the five days next week, meaning we can expect to see an active week for mortgage rates. The week’s data ends with the almighty Employment report Friday morning that almost always has a significant impact on the markets and mortgage pricing. But 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.