Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Friday's bond market opened in well in negative territory as the selling continues into the long weekend. The stock markets are in positive territory with the Dow up 67 points and the Nasdaq up 7 points. The bond market is currently down 16/32, which will likely push this morning’s mortgage rates higher by approximately .125 to .250 of a discount point.
There is no relevant data scheduled for release today. The negative tone in bonds is a carryover from yesterday’s announcement of $100 billion in new debt being sold by the Fed. This was more than expected and led to selling of current securities. The result was a significant loss to bonds during afternoon trading.
The bond market will close at 2:00 PM ET ahead of the Memorial Day Holiday Monday. All the financial markets will be closed Monday and will reopen Tuesday morning. These early closes sometimes lead to additional volatility in bond prices as investors prepare for the long weekend and trading thins with many traders starting the weekend early, but after this morning’s losses I don’t think we will see enough of a change to push mortgage rates any higher today.
Next week is fairly busy with economic reports scheduled for release every trading day. Some of the reports are fairly important, but none are considered extremely important. 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 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. Contact me for details.
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