Todays Interest rates

Mortgage and Lending with The Savings Bank NMLS ID # 40276

Wednesday's bond market has opened relatively flat despite stronger than expected economic news. The stock markets are showing gains with the Dow up 32 points and the Nasdaq up 3 points. The bond market is currently down 1/32, but due to weakness yesterday we will likely see a slight increase in this morning's mortgage rates.

Today's first piece of data was April's Housing Starts. It showed an unexpected increase in new starts, which is negative for bonds. However, a downward revision to March's final starts prevented much impact on the markets. Besides, this data is not considered to be of high importance to bonds and usually doesn't influence rates much.

The second report was April's Industrial Production. It showed an increase of 0.7% in industrial output. This was stronger than expected and did affect bonds somewhat. However, not enough to lead to much of a change in mortgage pricing. This morning's slight increase in rates is more of a result of weakness in bonds late yesterday than today's data.

Tomorrow's only important news is April's Leading Economic Indicators (LEI) at 10:00 AM ET. This Conference Board report attempts to measure economic activity over the next three to six months. It is expected to show no change from March's reading, meaning that economic activity is likely to remain flat during the next few months. A decline would be good news for the bond market and mortgage rates, while an increase could cause mortgage rates to inch higher tomorrow.

If I were considering financing/refinancing a home, I would.... Lock 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.

Comments (0)