July 26th, 2019 11:50 AM by T. Fanning
Last Updated: 7/26/19Friday's bond market has opened flat despite stronger than expected economic news. The major stock indexes are attempting to close out the week on a positive note, pushing the Dow higher by 47 points and the Nasdaq up76 points. The bond market is currently up 1/32 (2.08%), which should keep this morning's mortgage rates close to Thursday's pricing.Today's big economic news was the preliminary reading of the 2nd Quarter Gross Domestic Product (GDP) at 8:30 AM ET. It revealed that the economy grew at annual rate of 2.1% during the April through June months, down from the 1st quarter's 3.1%. The slower rate of growth is good news for bonds and mortgage pricing, but it exceeded forecasts of 1.9%, meaning that the economy was stronger last quarter than many had thought. Even an inflation-related reading within the data came in stronger than expected. Despite this news, bonds have been able to avoid heavy selling during early trading.This week's bond movement further establishes the range of the benchmark 10-year Treasury Note yield of 2.02 – 2.09%. The high end of that range was confirmed again yesterday as bonds rebounded shortly after reaching 2.09%. It still remains in the upper end of the range, but that resistance level should help prevent mortgage rates from moving much higher over the next couple of days. It also allows some room for improvement until we get to next week's most important events.Next week is going to be quite interesting as it is packed with extremely important events that are likely to create plenty of volatility in the markets. It starts off light with nothing scheduled for Monday but quickly picks up steam with two economic reports Tuesday. The rest of the week has the highly anticipated FOMC meeting where many feel the Fed will lower key rates, the ISM manufacturing index and the almighty monthly Employment report. 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...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
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