Daily Mortgage Rate Lock Advisory

Daily Mortgage Rate Lock Advisory – Tuesday Feb. 10th

Rate Lock Advisory – Tuesday Feb. 10th

Tuesday’s bond market has opened well into positive territory as last night’s speech by President Obama and his bank bailout plan are being received favorably. The stock markets are not reacting as well to the news with the Dow down 295 points and the Nasdaq down 49 points. The bond market is currently up 28/32, which should improve this morning’s mortgage rates by approximately .250 – .375 of a discount point.

Fed Chairman Bernanke will be speaking before the House Financial Services Committee at 1:00 PM ET today. He is expected to testify and update the panel on the Fed’s liquidity injections and future plans. His words could create movement in the markets and possibly mortgage pricing during afternoon trading. After this morning’s warm reception to the President’s plan, I don’t think that it is likely that we will have a negative reaction to Chairman Bernanke’s testimony.

However, this week begins the quarterly refunding or sales of government debt that has had traders so concerned about recently. We will likely see more volatility as the week goes on, and as the sales take place. A total of $67 billion in new debt is being sold this week, which had raised concern about demand for current debt already in the market. That is what has pressured bonds recently and helped drive mortgage rates higher. If the market can get by that stigma or concern, we could see mortgage rates rally in the coming weeks.

There was no relevant data scheduled for release this morning. Tomorrow brings us the first of this week’s three releases when the least important of them, December’s Goods and Services Trade Balance, will be posted. This report measures the U.S. trade deficit and can affect the value of the U.S. dollar versus other currencies, but it usually does not cause enough movement in bond prices to affect mortgage rates.

If I were considering financing/refinancing a home, I w ould…. 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: bailout plan, bank bailout, bond, bond prices, Chairman Bernanke, closing, fed chairman bernanke, financial services committee, Float, house financial services committee, lock, morning tomorrow, mortgage rates, President Obama, refinancing a home, U.S., warm reception, week

Daily Mortgage Rate Lock Advisory – Monday Feb. 9th

Rate Lock Advisory – Monday Feb. 9th

Monday’s bond market has opened in negative territory as investors prepare for this week’s sales and speeches by President Obama and Fed Chairman Bernanke. The stock markets are showing losses with the Dow down approximately 15 points and the Nasdaq down 3 points. The bond market is currently down 10/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

There are only three pieces of economic data scheduled to be posted this week along with a couple of Treasury auctions and relevant speeches from highly important speakers. Only one of the three reports are considered to be of high importance while one is moderately important. The third is not considered to be of much importance unless it varies greatly from forecasts.

None of the economic reports were posted today. However, President Obama will address the nation on national television this evening. He will likely speak about his economic r ecovery plan amongst other important topics. What he says may heavily influence trading tomorrow morning. It is very difficult to predict whether the markets are likely to react favorably to his words or negatively. But I am expecting to see volatility tomorrow morning.

Fed Chairman Bernanke will be speaking before the House Financial Services Committee tomorrow at 1:00 PM ET. He is expected to testify and update the panel on the Fed’s liquidity injections and future plans. His words could create movement in the markets and possibly mortgage pricing during afternoon trading.

There is no relevant data scheduled for release until Wednesday morning. This is when the week’s least important data, December’s Goods and Services Trade Balance, will be posted. This report measures the U.S. trade deficit and can affect the value of the U.S. dollar versus other currencies, but it usually does not cause enough movement in bond prices to affect mortgage rates.

Overall, it is difficult to peg a particular day as the most important of the week. Tomorrow will be quite interesting with the reaction to President Obama’s words from tonight and Fed Bernanke’s testimony on the Fed’s attempts to stabilize the financial system. The single most important piece of economic news comes Thursday, so that day needs to be given much weight also. Throw in the fact that there is an early close Friday due to the President’s Day holiday next Monday, and we have the makings of an interesting week ahead of us.

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 b e in the best interest of all/any other borrowers.

Tags: bond, bond prices, Chairman Bernanke, closing, economic reports, Fed, fed chairman bernanke, financial services committee, house financial services committee, lock, national television, negative territory, obama, President Obama, tomorrow, treasury auctions, U.S., week

Daily Mortgage Rate Lock Advisory – Tuesday Jan. 20th

Rate Lock Advisory – Tuesday Jan. 20th

Tuesday’s bond market has opened well into negative territory despite early stock losses. The stock markets have also shown a weak opening with the Dow down 130 points and the Nasdaq down 40 points. The bond market is currently down 29/32, which will likely push this morning’s mortgage rates higher by approximately .500 of a discount point over Friday’s rates. The financial markets were closed yesterday in observance of the Martin Luther King holiday.

Today’s weakness in bonds is a result of renewed concern about the supply of government debt that will need to be sold to cover the economic stimulus that President Obama has hinted at. The significant new debt that will be sold makes the current outstanding bonds less attractive to investors, leading to lower bond prices and higher mortgage rates this morning.

This holiday-shortened week brings us the release of only one monthly economic report for the markets to digest and it is not considered to be of high importance. This will likely leave the stock markets to be a major influence on bond trading and mortgage rates a good part of the week. Whether this is good or bad news for bonds depends if stocks rally or fall. If stocks move higher, bonds will likely suffer, leading to higher mortgage rates. However, if stocks show weakness, funds may shift into bonds, driving mortgage rates lower.

Today is Inauguration Day and while I don’t believe the ceremony or President Obama’s speech will directly affect the markets or mortgage rates, it does bring in the new administration, new policies and new theories. Those changes could come into play in the coming weeks and likely influence mortgage rates. Issues such economic stimulus and recovery along with tax and deficit news could create significant volatility in the markets and therefore mortgage pricing.

The week’s only relevant monthly economic data is December’s Housing Starts report early Thursday m orning, but I don’t see it causing much movement in mortgage rates. This report gives us an indication of housing sector strength and future mortgage credit demand, but it is not considered to be a heavy influence on bond trading.

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 prices, bond trading, closing, economic stimulus, inauguration day, influence, lock, negative territory, President Obama, report, stock, stock losses, Tuesday, week

Weekly Mortgage Rate Lock Advisory – Sunday Jan. 18th

Rate Lock Advisory – Sunday Jan. 18th

This holiday-shortened week brings us the release of only one monthly economic report for the markets to digest and it is not considered to be of high importance. This will likely leave the stock markets to be a major influence on bond trading and mortgage rates a good part of the week. Whether this is good or bad news for bonds depends if stocks rally or fall. If stocks move higher, bonds will likely suffer, leading to higher mortgage rates. However, if stocks show weakness, funds may shift into bonds, driving mortgage rates lower.

The financial markets are closed tomorrow in observance of the Martin Luther King Holiday. They will reopen Tuesday morning for regular trading hours. I don’t believe many mortgage lenders will be open tomorrow, but any that are will likely use Friday’s rates or not allow a rate to be locked tomorrow.

Tuesday is Inauguration Day and while I don’t believe the ceremony or President Obama’s speech will directly affect the m arkets or mortgage rates, it does bring in the new administration, new policies and new theories. Those changes could come into play in the coming weeks and likely influence mortgage rates. Issues such economic stimulus and recovery along with tax and deficit news could create significant volatility in the markets and therefore mortgage pricing.

The week’s only relevant monthly economic data is December’s Housing Starts report early Thursday morning, but I don’t see it causing much movement in mortgage rates. This report gives us an indication of housing sector strength and future mortgage credit demand, but it is not considered to be a heavy influence on bond trading.

Also Thursdays is the Labor Department’s weekly update on unemployment filings. They are expected to show that 548,000 new claims were filed last week. A smaller number is considered negative for bonds while a larger than expected rise is positive. But, this data is also not considered t o be of high importance. Since it is one of the only two reports released at all, it may influence trading some but not enough to greatly affect mortgage rates.

Overall, I am expecting a relatively quiet week in the mortgage market. As long as the stock markets remain fairly calm, mortgage rates will probably close the week close to Tuesday’s opening 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… 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 trading, closing, economic report, economic stimulus, inauguration day, influence, lock, mortgage credit, mortgage lenders, open tomorrow, President Obama, report, tomorrow, trading, Tuesday, week