Tuesday's bond market has opened in negative with no relevant economic news scheduled for release today. The stock markets are showing losses with the Dow down 36 points and the Nasdaq down 12 points. The bond market is currently down 6/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.
Tomorrow morn ing brings us the release of two reports to be concerned with. The first is the release of the revised 3rd Quarter Productivity report. This index is expected to show an upward revision from the preliminary reading of worker productivity. Higher levels of productivity are thought to allow the economy to expand without inflationary pressures rising. This is good news for the bond market because economic growth itself isn't necessarily bad for the bond market. It is the conditions around economic growth, such as inflation that hurt bond prices and mortgage rates. Current forecasts are calling for an annual rate of 5.8%, up from the previous estimate of 4.9%.
The second report of the day will be October's Factory Orders. This report is similar to last week's Durable Goods Orders release except that this one includes orders for both durable and non-durable goods. This data usually isn't a major influence on bond trading, but we may see it cause some movement in mortgage rates if it varies greatly from forecasts. Analysts are now expecting to see no change from September's levels.
There is no important news scheduled for release Thursday, but we will see the almighty Employment report Friday morning along with the University of Michigan Consumer Sentiment Index. Friday will likely be the most important day of the week in terms of mortgage rates changes.
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... Lock 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.
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