Should I lock or not?
Friday's bond market has opened in negative territory with no economic data to drive trading and a positive open in stocks. The Dow is currently up 30 points and the Nasdaq is up 2 points. The bond market is currently down 13/32, which should push this morning's mortgage rates higher by approximately .250 of a discount point.
There are no relevant reports see my blog at www.im4that.com or events scheduled for today that may affect the bond market or mortgage rates. This leaves the stock markets to influence bond trading and mortgage pricing the remainder of the day. If the stock markets remain near current levels, mortgage rates should follow suit. However, a noticeable improvement in stocks could lead to an upward revision in rates later today.
Yesterday's 30-year Bond auction did not go as well as Wednesday's 10-year Note sale. The lackluster results did lead to some selling in bonds late yesterday. That caused some lenders to revise their rates slightly higher before closing. The 10-year Note sale gave us more of an indication of interest in mortgage-related bonds than the 30-year sale did, so yesterday's lack of demand does not cause a great deal of concern. But, it could indicate that investors may have enough longer-term securities in their portfolio, or at the very least nearing that point. Therefore, we will be a little more cautious heading into the next round of auctions.
Next week brings us the release of a handful of relevant economic reports that are likely to impact mortgage rates. A couple of them are considered to be highly important to the markets and have the potential to cause sizable changes in rates. There is nothing of concern scheduled Monday, but the rest of the week includes a very important measurement of consumer spending (Tuesday) and two key inflation readings later in the week, in addition to a couple of moderately important releases. Look for more details on next week's events in Sunday's weekly preview.
If I were considering financing/refinancing a home here in Georgia, I would.... Lock see us at www.atlrates.com or atlantajumborates.com