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This is a report I receive 2 to 3 times a week. This report is to help you understand how and why interest rates move. Even through they give you an opinion it is only an opinion.
I help educate my sellers and buyers so they can make sound financial decisions

Arthur
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From: ALAMODE INC.

Monday's bond market has opened flat despite stronger than expected economic data and stock gains. The stock markets are starting the week in positive ground with the Dow up 60 points and the Nasdaq up 13 points. The bond market is currently unchanged from Friday's level, but we will probably see a slight increase in this morning's mortgage rates as a result of weakness late Friday.

June's New Home Sales was today's only relevant economic news posted this morning. The Commerce Department said late this morning that sales of newly constructed homes rose last month by more than analysts had expected. However, this data is not important enough to cause noticeable movement in the markets or mortgage pricing.

The rest of the week brings us six more economic reports and a couple of Treasury auctions that may influence mortgage rates. Today's data was one of the least important of the week and there is no relevant data being posted Thursday. This mea ns that we have six relevant reports for the markets to digest over only three days, which should translate into an active week for mortgage rates.

The Conference Board will post their Consumer Confidence Index (CCI) for July late tomorrow morning. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. If consumers are confident in their own financial situations, they are more apt to make large purchases in the near future. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, meaning that consumers were less confident than thought, we may see bond prices rise and mortgage rates drop Tuesday. Current forecasts are calling for a reading of 51.0, which would be a lower reading than June's and indicate consumers are becoming less comfortable with their finances.

Overall, I am expecting a fairly active week in the mortgage market. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important report of the week is Friday's preliminary GDP reading, making it one of the most important days of the week. But it is difficult to say which day we can expect to see the most movement in rates as several of releases and scheduled events have the potential to influence mortgage rates.

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.

©Mortgage Commentary 2010