Friday, November 22, 2013 - Article by: James Brooks - Polaris Home Funding Corp -
By James Brooks
The bond market is currently up 3/32, which will likely improve this morning's mortgage rates by approximately .250 of a discount point from yesterday's morning pricing. The improvement is much more a result of strength in bonds late yesterday than it is from this morning's open.
Today's schedule doesn't have anything on it that will likely impact mortgage rates. If we see an intra-day revision to rates it will likely be due to noticeable movement in the major stock indexes. If stocks make a move higher, bonds could be pressured, leading to a slight upward revision to mortgage pricing later today. If stocks remain near current levels this afternoon, I suspect mortgage rates should do the same.
Next week has a handful of economic reports scheduled for release that could affect mortgage rates. None of them are considered key reports but several do carry enough importance to move rates slightly. Monday has nothing scheduled that we need to be concerned about, so expect weekend news to be behind a noticeable move in bonds or mortgage rates as the week opens.
Next week will be shortened due to the Thanksgiving Day holiday. The markets will be closed Thursday and there will be an early close for stocks and bonds Friday. In addition, all of the week's events that we need to watch are set for only two days (Tuesday and Wednesday), so we could see some volatility the middle days.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now.
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