September 11th, 2020 1:03 PM by T. Fanning
Last Updated: 9/11/20Friday's bond market has opened in positive territory despite another stronger than expected inflation reading and early stock gains. The Dow is currently up 113 points while the Nasdaq is up 25 points. The bond market is up 3/32 (0.67%), but strength late yesterday should allow this morning's mortgage rates to be slightly lower than Thursday's early pricing.August's Consumer Price Index (CPI) was posted at 8:30 AM ET this morning, revealing a 0.4% increase in both the overall and core readings. Both readings exceeded expectations, indicating inflationary pressures at the consumer level of the economy was stronger than thought. Because inflation makes long-term securities such as mortgage bonds less attractive to investors, this was unfavorable news for mortgage rates.Next week has only a couple of economic reports scheduled, but one of them is considered to be highly important to the financial and mortgage markets. We also will have another FOMC meeting for the markets to digest. There is nothing of importance set for Monday, so expect weekend news to drive trading as the new week begins. 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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