Rate Lock Advisory For February 22, 2008

Friday's bond has opened up slightly due to early losses in stocks. The stock markets are down with the Dow down 35 points and the Nasdaq down 19 points. The bond market is currently up 4/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point over yesterday's morning rates.

There is no relevant economic news scheduled for release today. I am expecting to see a relatively calm day in bonds and mortgage rates, unless the stock markets move much higher or lower than current levels. As for mortgage rates, I am shifting to a lock recommendation for immediate term periods until we get to next week's data.

Next week brings us the release of several more pieces of economic data than we did this week. We have a wide range of data coming, including housing and manufacturing sector releases, the CPI's sister index for inflation readings in the PPI along with spending and consumer confidence readings to name a few. There is data scheduled for release every day of the week.

The week kicks off with January's Existing Home Sales data late Monday morning. It is the only news scheduled for release Monday, which will likely make it the least important day of the week. Look for more details on next week's event sin Sunday's weekly preview.

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 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 2008