Wednesday's bond market has opened down slightly despite stock weakness. The stock markets are showing sizable losses with the Dow down 82 and the Nasdaq nearly unchanged. The bond market is currently down 2/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.
There is no relevant economic data sched uled for release today. The Fed posted the minutes from their last FOMC meeting yesterday afternoon. They gave investors reason to believe that more rate cuts are coming in the near future. This led to a stock market rally late yesterday, but did not affect mortgage rates by much.
The first economic data of the week will be posted early tomorrow morning. August's Goods and Services Trade Balance will be released that day, but is not likely to cause much of a change in mortgage pricing. This data is actually the week's least important. It will give us the size of the U.S. trade deficit, but usually does not lead to significant movement in bond prices or mortgage rates. It is expected to show a trade deficit of $59.5 billion.
There are three reports scheduled for release Friday, with two of them being very important to the markets and mortgage pricing. The two most important are September's Retail Sales and Producer Price Index (PPI) reports. They can create a great deal of volatility in the markets and mortgage rates, so please be prepared to see movement in rates Friday.
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.
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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