Big changes on the lock/float front today. So, tune in, and away we go:
Today started off a little slow with regard to the bond market even though the overall stock market had posted losses. The same can be said for the stock market as of right now; early weakness where the Dow and Nasdaq are down (Dow is 60 points, Nasdaq is 10 points). With regard to mortgage rates today, you can expect to see them be slightly increased from Friday primarily because of the bonds down 2/32. A good estimate of how much higher is about an eigth of a discount point.
Even though there aren't any signficant economic reports being released today, there are 5 upcoming throughout the week. The quarterly earnings releases are also scheduled to come out this week which could definitely influence the touchy stock market - if reports are in positive territory you could see stocks going up as investors move their funds into the market, or if the reports are negative investors could pull their funds and move them into the bond market. To be honest, moving them from the stock market to the bond market would be excellent news for interest rates (mortgages)!
September's Industrial Production is scheduled to be published tomorrow morning, and will point to strength/weakness in manufacturing. This report primarily tracks order at our factories, ines, and utility providers, and is anticipated to reveal a .1% increase from August's numbers. While this is a good thing for those companies, this is not good news for us in the mortgage/Real Estate world; rates would most likely increase with a positive report and decrease with a negative reports.
Due to the previously mentioned circumstances, the mortgage rates are very very likely to jump around over the next week. The roller coaster ride in the stock market will more than likely continue which will, in turn, have an influence on the bond market.
The most significant report due out thise week is the CPI data, but rates will most likely not hesitate to move around prior to this release (it's all about the psychology, folks). So, with regard to my recommendation on locking or floating, I would firmly suggest floating because of the potential for stocks to drop and bonds to gain throughout the week. Again, this is just my personal/professional opinion.
*Original information can be found on my website at www.family-home-loans.net
*Original information provided by a la mode, inc.
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