Monday, May 5, 2014 - Article by: James Brooks - Polaris Home Funding Corp -
By James Brooks
The bond market is currently down 1/32 (2.60%), which should keep today's mortgage rates close to Friday's levels.
This week has little scheduled in terms of economic data that is expected to drive bond trading and mortgage rates. There are only two relevant monthly or quarterly economic reports on the calendar and both are considered to be fairly insignificant. We do, however, have two Treasury auctions that can potentially affect rates in addition to a couple of congressional appearances by Fed Chairman Yellen the middle part of the week.
Tomorrow does have one of those two reports, but it is not considered to be of much importance to mortgage rates. March's Goods and Services Trade Balance report will be released at 8:30 AM ET tomorrow morning. This report gives us the size of the U.S. trade deficit, expecting to show a $42.5 billion deficit. This data likely will have little influence on mortgage rates unless it shows a significant variance from forecasts.
Overall, I think we will see the most movement in mortgage rates the middle part of the week with the two Treasury auctions and congressional appearances by the Fed Chairperson the most important events. The calmest day could be today or Friday. Still, I recommend maintaining contact with your mortgage professional if you have not locked an interest rate yet because the overall tone and momentum of the bond market can change quickly at any time.
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... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.
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