Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Tuesday’s bond market has opened in negative territory with the stock markets in a sizable rally. The Dow is currently up 150 points while the Nasdaq has gained 36 points. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point.
There is no specific report or reason for stocks rallying this morning. Improving global economic conditions can be considered a contributing factor, but it is more of a situation where the general sentiment in the stock markets is favorable. This morning’s bond weakness is partly a result of the stock gains as investors shift funds from the safety of bonds to join the stock rally.
Also contributing to this morning’s negative opening in bonds is tomorrow’s big Treasury auction. It is common to see some weakness in bonds ahead of the major auctions as market participants prepare for the sale. If the sales go well, those pre-sale losses are usually recovered shortly after the auction is completed.
There is no relevant reports or events scheduled for today. Tomorrow does not bring us any relevant economic news but the 10-year Treasury Note auction will be held tomorrow. This sale will give us an important measure of investor interest in longer-term U.S. debt, particularly from international buyers. If there is a strong demand in the sale, we should see the broader bond market rally and mortgage rates move lower tomorrow afternoon. However, a lackluster interest in the sale would likely lead to higher mortgage rates during afternoon trading. The results of the sale will be posted at 1:00 PM ET.
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... Lock 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 are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact me for details. Jeff@StarMortgage.com
No comments:
Post a Comment