Mortgage Rates Today

Mortgage and Lending with The Savings Bank NMLS ID # 40276
Lock Advisory - Wednesday Jun. 6th

Wednesday's bond market opened in negative territory but has since moved into positive ground. The stock markets are showing considerable losses with the Dow down 100 points and the Nasdaq down 22 points. The bond market is currently up 5/32, but we will likely not see an improvement in this morning's mortgage rates due to weakness in bonds late yesterday.

Today's only relevant news was the revised 1st Quarter Productivity and Costs reading. It showed an increase of 1.0%, which was a downward revision of 0.7%. This was a weaker than expected reading, which can be considered negative for bonds. However, once the stock markets started falling, bonds were able to gain some support.

The only data scheduled for release tomorrow are weekly unemployment claims from the Labor Department. This report tracks new claims for unemployment benefits, but usually is not much of an influence on bonds or mortgage rates because it covers only a week's worth of claims. Analysts are expecting to see that 312,000 new claims were filed.

The third and final report of the week will be posted Friday morning. April's Goods and Services Trade Balance data, which will give us the size of the U.S. trade deficit, will be released at 8:30 AM. It isn't likely to cause much movement in the markets or mortgage rates, but nevertheless forecasts are expecting to see a $63.0 billion deficit.

It will be interesting to see what bonds do at their current levels. It appears that there is some resistance for the yield on the benchmark 10-year Treasury Note to surpass 5.00%. This is good news for mortgage rates as it should prevent much more of an increase in rates. If we see continued weakness in stocks, I suspect that the current yields on bonds will attract interest from investors, boosting bonds prices and lowering mortgage rates. However, if we break 5.00%, we could see rates move much higher.

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... 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.

Provadus Home Loans
Provadus Home Loans - Marietta, GA
Technology bringing you home.
Great advice, this summer will be very interesting with the rates being like gas prices.  I know people are hoping they will drop a little, but I do not think they will.  It seems that people are more serious all of a sudden about purchasing a home due to rates climbing.  Great post!
Jun 06, 2007 04:05 PM