January 11th, 2019 12:11 PM by T. Fanning
Last Updated: 1/11/19Friday's bond market has opened in positive territory as stocks look to close out the week on a negative note and the week's only important economic data showed no surprises. The major stock indexes are posting noticeable losses, pushing the Dow lower by 159 points and the Nasdaq down 29 points. The bond market is currently up 16/32 (2.69%), which should improve this morning's mortgage rates slightly. Preventing more of an improvement is weakness in bonds from late yesterday.Yesterday's 30-year Treasury Bond auction was not nearly as well received as Wednesday's 10-year Notes were. The indicators that we use to gauge investor demand showed an interest level that was below average. The results that were posted at 1:00 PM ET caused bonds to react negatively, although it was not enough of a move to cause an intraday revision to mortgage rates.This week's sole important economic release came at 8:30 AM ET this morning when December's Consumer Price Index (CPI) was posted. It showed that the overall CPI reading slipped 0.1% while the more important core data that excludes volatile food and energy prices rose 0.2% last month. Both readings pegged forecasts and point towards subdued inflation at the consumer level of the economy. It appears that some of the positive reaction we are seeing in bonds must be relief the data showed no upward surprises.Next week has a few economic reports set for release that are expected to affect mortgage rates in addition to the Fed Beige Book. However, one of the two reports in the batch that we can consider highly important is subject to the partial government shutdown as it is released by the Commerce Department. None of the week's releases or other mortgage-related events are set for Monday. Look for details on next week's full calendar in Sunday evening's weekly preview.If I were considering financing/refinancing a home, I would....Lock if my closing were taking place within 7 days...Float if my closing were taking place between 8 and 20 days...Float if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.**http://www.hlmcolorado.com/DailyRateAdvisory
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