Friday’s bond market has opened in positive territory despite unfavorable economic data. Stocks are mixed with the Dow down 151 points and the Nasdaq up 1 point. The bond market is currently up 4/32 (1.09%), which should improve this morning’s mortgage rates slightly if comparing to Thursday’s early pricing.
Today’s only relevant economic data came from the National Association of Realtors at 10:00 AM ET. Their Existing Home Sales report for December showed that home resales rose 0.7% last month, exceeding forecasts. The increase brought annual sales to their highest level since 2006, showing that the housing sector remains one of the few bright spots in the economy. Accordingly, we should consider the data bad news for bonds and mortgage rates.
Next week has a large number of economic releases and other events scheduled that have the potential to affect mortgage rates. Some of the data being posted is considered to be very important to the markets. In addition to the large number of economic reports, we also have two moderately important Treasury auctions and the first FOMC meeting of the new year taking place. It will undoubtedly be an active week in the financial and mortgage markets. Monday is the only day that doesn’t have at least one item scheduled. Look for details on all of next week’s relevant activities in Sunday evening’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.
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