Today's Commentary

Updated on November 21, 2014 11:16:57 AM EST

Friday’s bond market has opened up slightly even though stocks appear willing to close the week with strong gains. The major stock indexes are in rally mode with the Dow up 130 points and the Nasdaq up 31 points. The bond market is currently up 3/32 (2.32%), which should improve this morning’s mortgage rates by approximately .125 of a discount point.

Today has nothing scheduled for release that is likely to influence bonds or mortgage rates. It is interesting that bonds are flat for the most part when stocks are showing sizable gains. That means we can’t look towards stocks for bond and mortgage rate direction today. The good news is that if stocks do extend current gains, we won’t necessarily see pressure build in bonds that could cause an upward change in rates this afternoon.

Next week has a large handful of economic reports scheduled for release in addition to a couple of potentially relevant Treasury auctions. Some of the data is considered to be pretty important but none are known as key reports that are likely to be a market mover. None of the reports are scheduled for Monday, so we can expect weekend news to have the biggest influence on Monday’s bond trading and mortgage pricing.

It is worth noting that it is going to be a holiday-shortened week with only 3 ½ trading days. With nothing set for Monday, that leaves quite a bit of economic news and other events to be posted over only two trading days. Therefore, we can expect to see a pretty active couple of days in the markets and mortgage rates. Look for details on next week’s schedule 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... 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 2014
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