June 26th, 2020 9:39 AM by T. Fanning
Last Updated: 6/26/20Friday's bond market has opened in positive territory with stocks showing sizable gains and no major surprises in this morning's economic data. Stocks are in selling mode with the Dow down 330 points and the Nasdaq down 103 points. The bond market is currently up 7/32 (0.66%), which should improve this morning's mortgage rates by approximately .125 of a discount point.May's Personal Income and Outlays report was posted at 8:30 AM ET, revealing a 4.2% decline in income and an 8.2% jump in spending. The income reading was not as weak as expected but still a sizable drop. Spending was close to forecasts and the core PCE index that measures inflation pegged expectations. This morning's headline numbers allow us to consider the data neutral for mortgage rates.Also posted this morning was the University of Michigan's revised Index of Consumer Sentiment for June at 10:00 AM. It came in at 78.1, down from the preliminary reading of 78.9. The lower reading indicates that surveyed consumers were a little less optimistic about their own financial situations than previously thought. That makes the data favorable for the bond market and mortgage rates since waning confidence usually translates into softer levels of consumer spending.Next week brings us the release of a couple of highly important releases, including the ISM manufacturing index Wednesday and the monthly Employment report Thursday, which was moved from the traditional Friday release since the markets will be closed ahead of Saturday's Independence Day holiday. There are also some moderately important reports scheduled, but none are set for Monday. Look for details on all of next week's activities that are relevant to mortgage rates 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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