October 19th, 2018 10:32 AM by T. Fanning
Last Updated: 10/19/18Friday's bond market has opened in negative territory even though this morning's sole economic report gave us bond-friendly results. The major stock indexes are reacting to strong corporate earnings news, pushing the Dow higher by 226 points and the Nasdaq higher by 96 points. The bond market is currently down 8/32 (3.20%), but strength late yesterday should prevent much of a change in this morning's mortgage rates if comparing to Thursday's morning pricing. If your lender did revise rates lower intraday yesterday, you should see an increase in this morning's rates of the same amount.September's Existing Home Sales data was posted at 10:00 AM ET this morning. The National Association of Realtors reported that home resales fell 3.4% last month. This was a larger decline than forecasted, the largest monthly decline in the past two years and the sixth consecutive month that showed a drop in sales. Those points indicate that the housing sector is weakening, making the data good news for bonds and mortgage rates. However, we are seeing stock-related trading that makes the data irrelevant today.Next week brings us a handful of economic reports that are relevant to mortgage rates in addition to a couple of Treasury auctions. The important releases will come later in the week. Monday has nothing of importance set, so weekend news and stock movement are likely to drive bond trading and mortgage rates the first day or two. Look for details on next week's 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...Lock 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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