October 25th, 2019 1:36 PM by T. Fanning
Last Updated: 10/25/19Friday's bond market has opened fairly flat with stocks mixed again and no big surprises in today's only economic release. The Dow is currently up 46 points while the Nasdaq is down 4 points. The bond market is currently up 1/32 (1.76%), but weakness late yesterday is likely to cause this morning's mortgage rates to be slightly higher than Thursday's early pricing. If you saw an intraday increase before closing yesterday, you may not see an increase in this morning's rates.As with Wednesday's 5-year Note sale, yesterday's 7-year Treasury Note auction was uneventful. The benchmarks showed an average level of interest in the securities. Accordingly, the bond market had little reaction to the results and was no influence on mortgage pricing. We did see some late afternoon weakness yesterday, but it was not due to this auction.Today's sole economic release was October's revised Index of Consumer Sentiment from the University of Michigan. It showed a reading of 95.5 that was a bit lower than expectations and a small decline from the initial reading. The decline is technically good news for rates because it means surveyed consumers felt a little less confident in their own financial situations and are likely to not make a large purchase in the near future. However, this was such a minor variance from expectations that it has had no impact on today's bond trading or mortgage rates.Next week is going to be huge in terms of importance to the financial markets and mortgage rates. Between Wednesday morning and Friday morning there are four extremely important events taking place. Most of it is highly relevant economic data while one is another FOMC meeting. In addition to those four items, there are also a few moderately important events scheduled. Monday is the only day of the week with nothing scheduled, so we will likely see weekend news drive mortgage rates as the new week begins. Look for details on all of 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...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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