Todays Commentary

Updated on May 18, 2018 10:31:31 AM EDT
Friday’s bond market has opened in positive territory despite a lack of relevant economic data. The major stock indexes are mixed but calm with the Dow up 11 points and the Nasdaq down 23 points. The bond market is currently up 8/32 (3.08%), which should improve this morning’s mortgage rates by approximately .125 of a discount point compared to Thursday’s morning pricing.

There is nothing of importance taking place today that is likely to affect mortgage rates. There were a couple of Fed member speaking engagements this morning, but they failed to yield any surprises that the markets were interested in. This morning’s bond gains were a pleasant surprise after such a bad week. However, be careful if floating an interest rate as one good day doesn’t mean it is the end of the negative trend.

Next week beings us the release of a couple of housing-related reports and some pretty important manufacturing data. In addition to those reports, we also will get the minutes from the most recent FOMC meeting and have two Treasury auctions taking place. Monday has nothing scheduled, so expect weekend news to be the cause of a noticeable move in bonds or mortgage rates. It will be interesting to see if today’s gains will carry into next week’s trading.

Look for details on all of next week’s 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... 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.

 ©Mortgage Commentary 2018
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