Friday’s bond market has opened in positive territory, recovering some of yesterday’s afternoon selling. Stocks are mixed but fairly calm with the Dow up 26 points and the Nasdaq down 43 points. The bond market is currently up 4/32 (0.85%), which should keep this morning’s mortgage rates near Thursday’s early levels. 4/32 Bonds 30 yr - 0.85% 26 Dow 28,389 43 NASDAQ 11,462
Indexes Affecting Rate Lock HighUnknownEconomic Stimulus News There is nothing of relevance to mortgage rates taking place today. That doesn’t mean we won’t see an intraday move in the markets or mortgage rates though. They seem to be extremely sensitive to news about a potential stimulus agreement in Washington D.C. Headlines of progress towards an agreement should be taken as bad news for bonds and mortgage rates because a new package would help make the economy stronger. On the other hand, if talks fall apart again, we should see bonds react favorably and mortgage rates move lower. MediumUnknownNoneNext week has plenty of economic reports scheduled for release, one of which is a major report. There are also a couple of Treasury auctions that may influence afternoon trading two days. Each day has at least one item set that has the potential to affect mortgage pricing to some degree, including Monday when September’s New Home Sales report is posted. ---UnknownnoneLook for details about next week’s calendar and weekend news that are relevant to mortgage rates in Sunday evening’s weekly preview.
Float / Lock Recommendation 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.