May 19th, 2017 10:40 AM by T. Fanning
Last Updated: 5/19/17Friday's bond market has opened in negative territory with stocks showing noticeable gains and little else to drive bonds this morning. The Dow is currently up 88 points while the Nasdaq is up 35 points. The bond market is currently down 7/32 (2.25%), which with yesterday's afternoon weakness should push this morning's mortgage rates higher by approximately .125 - .250 of a discount point over Thursday's early pricing.Today does not have any relevant economic data scheduled. I believe we are seeing profit-taking from this week's big bond rally, where traders sell some holdings to lock in profits from that unexpected run. The benchmark 10-year Treasury Note yield is right at a key level (2.25%). If we break above that threshold, it could move quickly back into the mid-2.3 range, bringing mortgage rates higher with it. Failing to move above would be a good sign for mortgage shoppers.Next week brings us a handful of relevant economic data, but none are considered to be extremely important. There is nothing of relevance set for Monday and the most important data is scheduled for late in the week. In addition to the economic data, there are also a couple of Treasury auctions and the minutes from the most recent FOMC meeting on the calendar. Look for details on all of next week's activities 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...Lockt 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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