May 25th, 2018 2:09 PM by T. Fanning
Last Updated: 5/25/18Friday's bond market has opened in positive territory again after this morning's economic data did nothing to prevent the rally from extending another day. The major stock indexes are mixed but calm with the Dow down 11 points and the Nasdaq up 21 points. The bond market is currently up 12/32 (2.93%), which should improve this morning's mortgage rates by approximately .125 of a discount point. If your lender revised rates slightly higher Thursday afternoon, you should see more of an improvement this morning.April's Durable Goods Orders was the first of today's two relevant economic reports. The Commerce Department announced a 1.7% decline in new orders at U.S. factories for big-ticket products such as airplanes, appliances and electronics. That nearly matched expectations of a 1.6% decline. Since this data is known to be volatile from month to month, the 0.1% variance from forecasts is the same as pegging forecasts in other reports. A secondary reading that excludes orders for airplanes and other transportation-related products came in a bit stronger than predicted. However, it wasn't enough to offset the positive momentum in bonds.Also posted this morning the University of Michigan's revised Index of Consumer Sentiment for May. It showed a reading of 98.0 that was below expectations of 98.8. This means surveyed consumers were less optimistic about their own financial situations than many had thought. Because waning confidence usually means consumers are less likely to make a large purchase in the near future that fuels economic growth, we can consider this data favorable for bonds and mortgage rates.Next week has plenty of important economic data set for release, some of which is considered to be extremely important. The financial and mortgage markets will be closed Monday in observance of the Memorial Day holiday, but there is relevant data scheduled for all the remaining days. 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
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.