Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Friday’s bond market has opened fairly flat despite slightly stronger than expected economic news. The stock markets are in negative ground with the Dow down 37 points and the Nasdaq down 32 points. The bond market is currently down 2/32, which will likely push this morning’s mortgage rates higher by approximately .125 to .250 of a discount point.
The University of Michigan’s revised Index of Consumer Sentiment was today’s only relevant economic data. It revealed a reading of 66.0 that was a little higher than the preliminary reading of 64.6. This means that more surveyed consumers felt more comfortable with their own financial situations than earlier this month. This technically is negative news for bonds and mortgage pricing because higher levels of consumer confidence means consumers are more apt to make large purchases in the near future. That adds fuel to economic growth that makes bonds less appealing to investors. However, today’s report is considered to be only moderately important to the markets, so its impact has been relatively minimal.
Unless the stock markets stage a sizable rally or sell-off, I suspect bond prices and mortgage rates will remain near current levels the rest of the day. There is not relevant news or events expected this afternoon to influence trading either way.
Next week is pretty busy in terms of economic releases. There is relevant economic data scheduled for release four out of the five days, including Monday morning when June’s New Home Sales data is posted. This report is the sister release to this week’s Existing Home Sales data, but is next week’s least important monthly or quarterly report. 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...
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. See testimonials. Call me 800-941-5616 or email me with questions: jeff@starmortgage.com
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