RateUpdate.com : Daily Mortgage Market Commentary

Daily Market Commentary

Today's RateUpdate.com Report
Updated on Apr 4 2005 11:31AM EST

Mondays bond market has opened flat with no relevant economic news being posted today. The stock markets are reacting negatively to news that oil prices touched new record highs. The Dow has lost 15 points while the Nasdaq is down 5 points. The bond market is currently up 1/32, but we will still see a small increase in this mornings rates as a result of weakness after Fridays rates were posted.

This week brings the release of no relevant monthly or quarterly economic reports for the bond market to digest. With the light schedule, look for outside factors to drive bond prices and mortgage rates. As expected, we did see a fair amount of volatility in the financial markets last week. This led to changes in mortgage rates several days, with most of the weeks change coming late in the week.

This week will likely be quite different. With no relevant data on the calendar, fluctuations in the value of the U.S. dollar and oil prices will likely affect bond trading a little more than usual. Still, I expect to see a very quiet week for mortgage rates unless there are significant changes in the major stock indexes or oil prices.

Overall, look for a quiet week for mortgage rates. The most important day could be Thursday with weekly unemployment figures being released. After Fridays disappointing employment numbers for March, an unexpected move in weekly figures could lead to changes in mortgage rates also.

With a lack of economic data to drive bond buying, I am holding the lock recommendations for right now. This just means that the there is little likelihood of rates dropping much in the immediate future. In other words, the risk versus reward of continuing to float an interest rate has shifted more towards the risk side.

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... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

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