Tuesday's bond market has opened in negative territory following early stock gains. The stock markets are in positive territory with the Dow up 50 points and the Nasdaq up 3 points. The bond market is currently down 11/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
I suspect that we may see furth er pressure in bonds the next few days with little economic news scheduled. Therefore, I am holding the lock recommendations until we get an idea which direction we are heading.
The first piece of data scheduled for release comes tomorrow morning with the release of the 3rd Quarter Productivity report. The productivity index is expected to show a level of worker productivity during the third quarter similar to last quarter's final reading of 3.1%. This would be good news for the bond market because high levels of productivity helps the economy to expand without inflationary pressures being a concern.
The final two releases of the week will be posted Friday morning. The first is September's Goods and Services Trade Balance report. The second will be November's preliminary University of Michigan Index of Consumer Sentiment during late morning trading. Neither are considered to be major market movers, but with little data being posted this week we may see some m ovement in rates as a result.
If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float 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... 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.
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