Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Friday’s bond market has opened in negative territory again despite stock weakness during early trading. The stock markets are still unable to hold recent gains with the Dow down 90 points and again falling below the 10,000 benchmark. The Nasdaq is currently down 4 points. The bond market is down 13/32, which will likely push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point.
Today’s only relevant economic news came from the National Association of Realtors who reported that home resales rose to their highest level in over two years during September. This is bad news for bonds because a strengthening housing market makes a broader economic recovery much more likely. However, this data is not one of the more important reports we see each month, so its impact on today’s rates has been fairly minimal.
Next week is much more active in terms of important economic reports than this week was. There are reports that are considered to be highly important scheduled for release multiple days. They include a key measure of consumer confidence, personal income and spending data and the preliminary estimate of the 3rd Quarter Gross Domestic Product (GDP). We also have a couple of Treasury auctions to look out for.
None of the important data is scheduled for release Monday, so I am expecting stocks to heavily influence trading and any changes to mortgage pricing. Look for details on next week’s reports and 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... Lock 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 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
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