The bond market opened in positive territory this morning which continued yesterday's activity. The Dow is down just over 33 points currently, and the Nasdaq is down approx. 10 points. Mortgage rates should improve today by about .25 discount points to possibly just over that....maybe 3/8's.
The Fed Beige Book was released yesterday and showed considerable decrease in economic growth in most regions of the U.S. This data is significant to the Federal Reserve during their FOMC meetings, and is a primary reason why the bond market gained momentum in the late afternoon yesterday; hinting toward yet another rate cut by the Fed in the next meeting.
Earlier this morning, the Conference Board posted the Leading Economic Indicators (LEI) for September. The publication showed an increase of .3% which met expectations and anticipations. However, the Conference Board also revised August's loss from .6% to .8%. Overall, this report could be good for the bond market, but as of right now hasn't had all too much effect on them or mortgage rates.
Another interesting piece of information was last week's unemployment claims from the Labor Department. According to the report, there were 337,000 new claimes for unemployment benefits which is significantly higher than anticiapted. However, since this is only a track of one week of claims, there hasn't been any affect on the mortgage rates or market.
Even though there isn't any considerable reports that affect us and the overall market scheduled for release tomorrow, the stock markets will be one of the more significant factors in what mortgage rates do tomorrow because a plethora of quarterly reports are anticipated for today which could lead to some surprises from big name companies. Market wise, this could lead to large gains or losses in stocks, which could in turn might start a bond rally or weakness, and consequently change the mortgage pricing.
Due to the information above, I would consider locking my loan if it were closing within the next 7 days, and float if it were closing after the 7 day mark.
Thanks for stopping by!
*Original information supplied by a la mode, inc.
Comments(0)