June 21st, 2019 1:04 PM by T. Fanning
Last Updated: 6/21/19Friday's bond market has opened in negative territory as selling that started late yesterday carries into this morning's session. Stocks are mixed but fairly calm with the Dow up 2 points and the Nasdaq down 18 points. The bond market is currently down 9/32 (2.05%), which with yesterday's afternoon losses should push this morning's mortgage rates higher by approximately .250 of a discount point over Thursday's early pricing.It is quite concerning that the benchmark 10-year Treasury Note yield failed to hold its sub-2.00% move. This indicates there is strong resistance to that level that may take some time or major events to break. Therefore, it would be prudent to watch the markets closely if still floating an interest rate and to at least consider locking if closing in the near future. There could be another test of 2.00% soon, but failing again could drive yields and mortgage rates higher in the short-term.The National Association of Realtors gave us their Existing Home Sales report for May at 10:00 AM ET this morning. It revealed a 2.5% increase in home resales last month, exceeding expectations. The stronger than expected housing data is negative for bonds and mortgage rates, but the selling was clearly apparent long before this report was posted. In other words, it has not had a noticeable impact on today's trading or mortgage pricing.Next week brings us a few economic reports that may influence mortgage rates. There is something scheduled each day except Monday. None of the reports are considered key releases, but there are two that will draw more attention than the others. 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...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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