Friday, April 9th
Friday’s bond market has opened in negative territory following unexpectedly strong inflation data. Stocks are mixed again with the Dow up 96 points and the Nasdaq down 32 points. The bond market is currently down 10/32 (1.66%), but strength late yesterday should offset this morning’s weakness and keep mortgage rates close to Thursday’s early pricing.
10/32
Bonds
30 yr - 1.66%
96
Dow
33,599
32
NASDAQ
13,797
Trailing 90 Days - National Average
High
Negative
This morning’s only relevant economic data was March's Producer Price Index (PPI) that showed inflationary pressures at the manufacturing level of the economy spiked much more than predicted. The overall reading came in at up 1.0%, while the more important core data that excludes volatile food and energy prices jumped 0.7%. Both readings were well above forecasts of up 0.5% and 0.2% respectively. These readings are clearly bad news for bonds and mortgage rates because rapidly rising inflation makes long-term bonds, such as mortgage securities, less attractive to investors. That leads to higher yields and increases to mortgage rates.
High
Unknown
Next week’s calendar is much busier than this week with a couple of highly important reports, a batch of moderately relevant releases and two Treasury auctions that can influence afternoon trading. There is at least one event scheduled each day, including Monday when a 10-year Treasury Note auction will be held. Look for details on next week’s calendar in Sunday evening’s weekly preview.
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... 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.