August 3rd, 2018 11:30 AM by T. Fanning
Last Updated: 8/3/18Friday's bond market has opened in positive territory following favorable news in today's major economic release. The stock markets are showing moderate gains with the Dow up 61 points and the Nasdaq up 10 points. The bond market is currently up 6/32 (2.96%), which with a bit of strength late yesterday, should improve this morning's mortgage rates by approximately .125 of a discount point if comparing to Thursday's morning levels.Today's big news was July's monthly Employment report at 8:30 AM ET. It revealed that only 157,000 new jobs were added to the economy last month, falling short of the 190,000 that was expected. There were upward revisions to June and May's figures, adding 59,000 more jobs for the year. However, the weaker number for July indicates the employment sector is not as strong right now as thought. That is good news for bonds and mortgage rates because bonds are more appealing to investors during weaker economic conditions.Other key readings in today's release were the unemployment rate and average earnings. The unemployment rates matched forecasts of 3.9%, down slightly from June's 4.0%. The same for average earnings- up 0.3% as analysts were expecting to see. The lack of surprises in these readings have helped prevent a better response in the bond market and mortgage rates.Next week brings us the release of only a couple of economic reports in addition to a few Treasury auctions that have the potential to influence mortgage rates. All its activities are scheduled for the latter days. With nothing of importance set for Monday, we can expect any weekend news to be the biggest force behind a move in mortgage rates as the new week starts. Look for details on all of next week's events 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.