Today's Commentary

Updated on October 24, 2014 11:25:35 AM EDT

Friday’s bond market has opened in positive territory even though stocks are showing minor gains. The Dow is up 38 points while the Nasdaq has gained 13 points. The bond market is currently up 4/32 (2.26%), but I don’t believe we will see much of a change in this morning’s mortgage rates due to a little weakness late yesterday.

September's New Home Sales report at 10:00 AM was today’s only relevant economic data. The Commerce Department reported that sales of newly constructed homes rose 0.2% last month. This was a stronger monthly move than the decline that was expected. However, that difference is due to a sizable downward revision in August’s sales that allowed for the small increase from August to September. The number of sales fell short of analysts’ forecasts, making the data slightly positive for the bond and mortgage markets. Unfortunately, this data is not important enough to affect rates with that size of a variance.

If we see an intraday revision to mortgage rates, it will likely be a result of a noticeable move in stocks. If the major stock indexes extend their current gains, bonds could come under pressure, leading to an upward revision to rates later today. On the other hand, stock weakness should favor bonds and possibly cause rates to improve slightly this afternoon.

Next week is very busy with several important economic releases, including the preliminary GDP reading for the 3rd quarter. In addition to the data and a couple of Treasury auctions, there is another FOMC meeting taking place. There is nothing of relevance set for Monday, but we still may see movement in the markets and rates as investors prepare for the week’s activities. Look for details on those events 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 2014
Please E-mail us your opinion of this report

Get your Daily Commentary from MVB Mortgage everyday!

Would you like to receive the commentary
on a daily or weekly basis?
Daily will send a copy Monday - Sunday.
Weekly will send only Sunday's weekly overview/preview.

Please be assured that we will not
share your email address with ANYONE. Just fill out the form below!!

Your name:

Your Email Address:

I would like the commentary sent
Daily      Weekly