Monday's bond market has opened in positive territory after the stock markets have failed to build on Friday's rally. The major Dow and Nasdaq initially opened with modest gains, but have since fallen into negative territory with losses of 22 points and 5 points respectively. The bond market is currently up 10/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point.

The Conference Board reported late this morning that its Leading Economic Indicators (LEI) for July rose 0.4%. This indicates that economic activity is expected to increase moderately over the next three to six months, but since it matched forecasts has had little impact on this morning's mortgage rates.

There is no relevant economic data scheduled for release the middle part of the week. I am expecting to see the stock markets be the biggest factor in bond trading those days. If the major stock indexes rally, we may see bond prices fall and mortgage rates rise. However, stock weakness could lead to lower mortgage rates.

Overall, look for Friday to be the busiest day of the week. We may see profit taking in the bond market as investors look to capture the profits from the recent bond rally. This may lead to upward pressure in bonds that could push mortgage rates higher. Accordingly, I am maintaining the current lock recommendations.

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... 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.

Please let me know if I can provide loan information for any of your clients. I would be happy to quickly pre-qualify them, provide loan scenarios, or help improve their credit position to obtain a lower interest rate.

I am here to provide you and your clients with exceptional service in a courteous and respectful manner.

Paul Lefton