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Weekly Rate Lock Advisory - 4/7/2008

April 7th, 2008 9:41 AM

Weekly Rate Lock Advisory

Monday's bond market has opened in negative territory after the stock markets open the week with gains. The Dow is currently up 31 points while the Nasdaq has gained 6 points. The bond market is currently down 18/32, but the increase to this morning's mortgage rates should be minimal due to strength in bonds late Friday.

There is no relevant economic news scheduled for release today. The week brings us the release of only two relevant economic reports in addition to the minutes from the last FOMC meeting and a Treasury auction. Both of the relevant reports are scheduled for release late in the week, so the most movement in rates may come the latter part of the week.

The minutes from the last FOMC meeting will be released tomorrow afternoon. Market participants are interested in how divided the Fed is towards rate cuts and possible future moves. The minutes give us insight to their current thought process and individual Fed member opinions. Any surprises in the 2:00 PM ET release could cause afternoon volatility in the markets Tuesday and possible changes in mortgage pricing.

Overall, I am proceeding into this week very cautiously. There are several variables that could make this week very quiet or quite rocky for mortgage shoppers. Tuesday's FOMC minutes could very well be a major market mover or a complete non-factor. Same goes for Thursday's Treasury auction. The truth is, the only day that I believe it is safe to say that we will see movement in rates is Friday as a result of the data being posted. Until then, please proceed carefully if still floating an interest rate.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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 opini on 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.

Posted by Mark Brekhus on April 7th, 2008 9:41 AMPost a Comment (0)

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