 | |||
 |  |  |  |
Friday's bond market has opened up sharply again despite stronger than expected economic data. The stock markets are posting sizable losses with the Dow down almost 200 points and the Nasdaq down 35 points. This has made bonds more attractive to investors as they seek safe-haven from the stock volatility. The result has the bond market up 20/32 and mortgage rates improving another .375 of a discount point.
January's Personal Income ad Outlays data was released this morning, showing a 0.3% rise in income and a 0.4% increase in spending. Both were a little stronger than expected, but have not had a negative impact on bonds or mortgage rates.
The second report of the day was the University of Michigan's revision to their Index of Consumer Sentiment for February. The index was revised higher than was expected to stand at 70.8. However, as with the income and spending report, the news has fortunately had little influence on trading or rates.
Next week is fairly active with economic releases for the markets to digest. It kicks off with Monday's ISM manufacturing index for February. This is an important report and can move the markets and mortgage rates if it varies from forecasts. The week closes with the almighty Employment report Friday morning and between those two are a handful of relevant releases. Look for more details on next week's events in Sunday's weekly preview.
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.
©Mortgage Commentary 2008
Comments(1)